Overseas Realty (Ceylon) Plc (OSEA.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

Overseas Realty (Ceylon) Plc

R I L Property Plc

Equity Two Plc

Seylan Developments Plc

Commercial Development Co. Plc

Prime Lands Residencies Plc

Colombo Land & Development Co. Plc

Millennium Housing Developers Ltd.

Colombo City Holdings Plc

The Colombo Fort Land & Building Co. Plc

CT Land Development Plc

Why is Overseas Realty (Ceylon) Plc ?

Strong Long Term Fundamental Strength with a -2.10% CAGR growth in Net Sales

The company has declared Positive results for the last 3 consecutive quarters

INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
ROCE(HY) Highest at 13.78%
INVENTORY TURNOVER RATIO(HY) Highest at 3.6 times

With ROE of 10.08%, it has a very attractive valuation with a 0.79 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 86.07%, its profits have risen by 61% ; the PEG ratio of the company is 0.1

Market Beating performance in long term as well as near term

Along with generating 86.07% returns in the last 1 year, the stock has outperformed Sri Lanka CSE All Share in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Overseas Realty (Ceylon) Plc should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Overseas Realty (Ceylon) Plc for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Overseas Realty (Ceylon) Plc

86.83%

4.69

32.47%

Sri Lanka CSE All Share

41.16%

2.63

15.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.10%

EBIT Growth (5y)

1.70%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

6.13%

Dividend Payout Ratio

27.02%

Pledged Shares

Institutional Holding

ROCE (avg)

9.97%

ROE (avg)

7.34%

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

0.79

EV to EBIT

11.30

EV to EBITDA

11.10

EV to Capital Employed

0.78

EV to Sales

5.61

PEG Ratio

0.13

Dividend Yield

ROCE (Latest)

6.90%

ROE (Latest)

10.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

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

20What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

ROCE(HY)

Highest at 13.78%

INVENTORY TURNOVER RATIO(HY)

Highest at 3.6 times

RAW MATERIAL COST(Y)

Fallen by -6.11% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.37 times

NET SALES(Q)

Highest at LKR 3,787.11 MM

PRE-TAX PROFIT(Q)

Highest at LKR 2,132.61 MM

NET PROFIT(Q)

Highest at LKR 1,988.47 MM

-2What is not working for the Company

INTEREST(Q)

At LKR 196.15 MM has Grown at 10.17%

Here's what is working for Overseas Realty (Ceylon) Plc

Inventory Turnover Ratio

Highest at 3.6 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at LKR 3,787.11 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Net Sales

At LKR 3,787.11 MM has Grown at 50.38%

over average net sales of the previous four periods of LKR 2,518.32 MM

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Pre-Tax Profit

Highest at LKR 2,132.61 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Pre-Tax Profit

At LKR 2,132.61 MM has Grown at 78.47%

over average net sales of the previous four periods of LKR 1,194.97 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

Highest at LKR 1,988.47 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

Net Profit

At LKR 1,988.47 MM has Grown at 78.47%

over average net sales of the previous four periods of LKR 1,114.18 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

Debtors Turnover Ratio

Highest at 5.37 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -6.11% (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

Here's what is not working for Overseas Realty (Ceylon) Plc

Interest

At LKR 196.15 MM has Grown at 10.17%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)