ScoreWhy is Lion Brewery (Ceylon) Plc ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 24.84%
- Healthy long term growth as Net Sales has grown by an annual rate of 22.77% and Operating profit at 29.79%
- Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 6.98
2
The company has declared Positive results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at LKR 12,935.09 MM
- RAW MATERIAL COST(Y) Fallen by -0.99% (YoY)
- CASH AND EQV(HY) Highest at LKR 32,722.52 MM
3
With ROE of 28.15%, it has a fair valuation with a 3.94 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 34.31%, its profits have risen by 13.2% ; the PEG ratio of the company is 1.1
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Lion Brewery (Ceylon) Plc should be less than 10%
- Overall Portfolio exposure to Beverages should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Lion Brewery (Ceylon) Plc for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Lion Brewery (Ceylon) Plc
34.31%
1.11
35.67%
Sri Lanka CSE All Share
61.92%
3.56
17.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
22.77%
EBIT Growth (5y)
29.79%
EBIT to Interest (avg)
6.98
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.20
Sales to Capital Employed (avg)
3.15
Tax Ratio
39.60%
Dividend Payout Ratio
38.70%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
57.96%
ROE (avg)
24.84%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
3.94
EV to EBIT
7.45
EV to EBITDA
6.35
EV to Capital Employed
5.30
EV to Sales
1.02
PEG Ratio
1.06
Dividend Yield
0.01%
ROCE (Latest)
71.23%
ROE (Latest)
28.15%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at LKR 12,935.09 MM
RAW MATERIAL COST(Y)
Fallen by -0.99% (YoY
CASH AND EQV(HY)
Highest at LKR 32,722.52 MM
DIVIDEND PER SHARE(HY)
Highest at LKR 26.09
-4What is not working for the Company
ROCE(HY)
Lowest at 30.66%
OPERATING PROFIT(Q)
Lowest at LKR 4,344.05 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 14.07 %
Here's what is working for Lion Brewery (Ceylon) Plc
Operating Cash Flow
Highest at LKR 12,935.09 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (LKR MM)
Cash and Eqv
Highest at LKR 32,722.52 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Dividend per share
Highest at LKR 26.09
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (LKR)
Raw Material Cost
Fallen by -0.99% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at LKR 731.7 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (LKR MM)
Here's what is not working for Lion Brewery (Ceylon) Plc
Operating Profit
Lowest at LKR 4,344.05 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (LKR MM)
Operating Profit Margin
Lowest at 14.07 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Non Operating Income
Highest at LKR 0.05 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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