Malwatte Valley Plantations Plc (MAL.N0000) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bairaha Farms Plc

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Kelani Valley Plantations Plc

Maskeliya Plantations Plc

Kegalle Plantations PLC

Kahawatte Plantations Plc

Browns Investments Plc

Malwatte Valley Plantations Plc

Balangoda Plantations Plc

Hapugastenne Plantations Plc

Why is Malwatte Valley Plantations Plc ?

Negative results in Mar 26

PRE-TAX PROFIT(Q) At LKR -37.58 MM has Fallen at -151.44%
RAW MATERIAL COST(Y) Grown by 47.69% (YoY)
NET SALES(Q) Lowest at LKR 1,419.34 MM

With ROE of 2.61%, it has a expensive valuation with a 1.79 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 -4.53%, its profits have fallen by -58.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.53% returns in the last 1 year, the stock has also underperformed Sri Lanka CSE All Share in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Malwatte Valley Plantations Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Malwatte Valley Plantations Plc

-4.53%

-0.18

27.70%

Sri Lanka CSE All Share

11.95%

0.72

16.49%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.12%

EBIT Growth (5y)

-5.14%

EBIT to Interest (avg)

3.19

Debt to EBITDA (avg)

0.39

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

1.32

Tax Ratio

33.86%

Dividend Payout Ratio

7.63%

Pledged Shares

Institutional Holding

ROCE (avg)

10.14%

ROE (avg)

12.85%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.79

EV to EBIT

92.49

EV to EBITDA

36.62

EV to Capital Employed

1.98

EV to Sales

1.28

PEG Ratio

Dividend Yield

ROCE (Latest)

2.14%

ROE (Latest)

2.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 4.76 times

CASH AND EQV(HY)

Highest at LKR 4,375.23 MM

DEBT-EQUITY RATIO (HY)

Lowest at -11.71 %

INVENTORY TURNOVER RATIO(HY)

Highest at 7.11 times

-21What is not working for the Company

PRE-TAX PROFIT(Q)

At LKR -37.58 MM has Fallen at -151.44%

RAW MATERIAL COST(Y)

Grown by 47.69% (YoY

NET SALES(Q)

Lowest at LKR 1,419.34 MM

NET PROFIT(Q)

Lowest at LKR -37.58 MM

EPS(Q)

Lowest at LKR -0.17

Here's what is working for Malwatte Valley Plantations Plc

Debtors Turnover Ratio

Highest at 4.76 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Cash and Eqv

Highest at LKR 4,375.23 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -11.71 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 7.11 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Malwatte Valley Plantations Plc

Net Sales

At LKR 1,419.34 MM has Fallen at -34.03%

over average net sales of the previous four periods of LKR 2,151.38 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (LKR MM)

Pre-Tax Profit

At LKR -37.58 MM has Fallen at -151.44%

over average net sales of the previous four periods of LKR 73.05 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (LKR MM)

Net Profit

At LKR -37.58 MM has Fallen at -167.57%

over average net sales of the previous four periods of LKR 55.61 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (LKR MM)

Net Sales

Lowest at LKR 1,419.34 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (LKR MM)

Net Profit

Lowest at LKR -37.58 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)

EPS

Lowest at LKR -0.17

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (LKR)

Raw Material Cost

Grown by 47.69% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales