Why is Resus Energy Plc ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Operating profit has grown by an annual rate 6.99% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Capital Employed (avg) of 12.90% signifying low profitability per unit of total capital (equity and debt)
2
The company has declared negative results in Dec'2024 after 4 consecutive positive quarters
- NET PROFIT(HY) At LKR 70.45 MM has Grown at -81.06%
- ROCE(HY) Lowest at 6.99%
- RAW MATERIAL COST(Y) Grown by 20.35% (YoY)
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 Power)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Resus Energy Plc for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Resus Energy Plc
-100.0%
2.78
38.95%
Sri Lanka CSE All Share
60.36%
3.50
17.24%
Quality key factors
Factor
Value
Sales Growth (5y)
14.18%
EBIT Growth (5y)
6.99%
EBIT to Interest (avg)
2.22
Debt to EBITDA (avg)
4.28
Net Debt to Equity (avg)
1.41
Sales to Capital Employed (avg)
0.19
Tax Ratio
42.03%
Dividend Payout Ratio
40.09%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
12.90%
ROE (avg)
17.46%
Valuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
1.56
EV to EBIT
10.73
EV to EBITDA
9.02
EV to Capital Employed
1.23
EV to Sales
5.92
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
11.50%
ROE (Latest)
6.87%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Movement
3What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 2.43%
NET SALES(Q)
Highest at LKR 369.25 MM
-10What is not working for the Company
NET PROFIT(HY)
At LKR 70.45 MM has Grown at -81.06%
ROCE(HY)
Lowest at 6.99%
RAW MATERIAL COST(Y)
Grown by 20.35% (YoY
Here's what is working for Resus Energy Plc
Debtors Turnover Ratio
Highest at 2.43% and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Net Sales
Highest at LKR 369.25 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Depreciation
Highest at LKR 35.13 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 Resus Energy Plc
Net Profit
At LKR 70.45 MM has Grown at -81.06%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (LKR MM)
Raw Material Cost
Grown by 20.35% (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






