Renuka Foods Plc (COCO.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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Renuka Foods Plc

Dipped Products Plc

Richard Pieris & Co. Plc

BPPL Holdings Ltd.

Why is Renuka Foods Plc ?

Poor Management Efficiency with a low ROCE of 6.29%

The company has been able to generate a Return on Capital Employed (avg) of 6.29% signifying low profitability per unit of total capital (equity and debt)

With a growth in Net Sales of 10.48%, the company declared Very Positive results in Mar 25

RAW MATERIAL COST(Y) Fallen by -1,132.11% (YoY)
NET SALES(Q) Highest at LKR 3,960.27 MM
PRE-TAX PROFIT(Q) Highest at LKR -56.9 MM

With ROE of -5.71%, it has a risky valuation with a 0.77 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 262.28%, its profits have risen by 59.9%

Market Beating Performance

The stock has generated a return of 262.28% in the last 1 year, much higher than market (Sri Lanka CSE All Share) returns of 60.36%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Renuka Foods Plc should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Renuka Foods Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Renuka Foods Plc

-100.0%

3.48

59.91%

Sri Lanka CSE All Share

60.36%

3.50

17.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.66%

EBIT Growth (5y)

14.49%

EBIT to Interest (avg)

0.28

Debt to EBITDA (avg)

290.86

Net Debt to Equity (avg)

0.83

Sales to Capital Employed (avg)

1.60

Tax Ratio

1.16%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.29%

ROE (avg)

5.55%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.77

EV to EBIT

-460.89

EV to EBITDA

45.62

EV to Capital Employed

0.88

EV to Sales

0.61

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.19%

ROE (Latest)

-5.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Bullish

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

10What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1,132.11% (YoY

NET SALES(Q)

Highest at LKR 3,960.27 MM

PRE-TAX PROFIT(Q)

Highest at LKR -56.9 MM

NET PROFIT(Q)

Highest at LKR -70.58 MM

EPS(Q)

Highest at LKR -0.35

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR -1,546.4 MM

DEBT-EQUITY RATIO (HY)

Highest at 85.8 %

Here's what is working for Renuka Foods Plc

Net Sales

Highest at LKR 3,960.27 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Net Sales

At LKR 3,960.27 MM has Grown at 28.42%

over average net sales of the previous four periods of LKR 3,083.73 MM

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Pre-Tax Profit

Highest at LKR -56.9 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 -56.9 MM has Grown at 71.47%

over average net sales of the previous four periods of LKR -199.43 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

Highest at LKR -70.58 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS

Highest at LKR -0.35

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Raw Material Cost

Fallen by -1,132.11% (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 Renuka Foods Plc

Operating Cash Flow

Lowest at LKR -1,546.4 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (LKR MM)

Debt-Equity Ratio

Highest at 85.8 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio