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Royal Ceramics Lanka Plc

  • Market Cap: Large Cap
  • Industry: Building Products
  • ISIN: LK0217N00006
LKR
43.80
4.2 (10.61%)

Dec 12

COL

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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
Central Industries Ltd.
Lanka Ceramic Plc
Royal Ceramics Lanka Plc
Lanka Tiles PLC
Swisstek (Ceylon) Plc
Lanka Walltile Plc
Why is Royal Ceramics Lanka Plc ?
1
Flat results in Jun 25
  • INTEREST(Q) At LKR 641.16 MM has Grown at 16.74%
  • INTEREST COVERAGE RATIO(Q) Lowest at 303.88
  • RAW MATERIAL COST(Y) Grown by 6.03% (YoY)
2
With ROE of 12.66%, it has a very expensive valuation with a 1.04 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 21.67%, its profits have fallen by -31.4%
3
Underperformed the market in the last 1 year
  • The stock has generated a return of 21.67% in the last 1 year, much lower than market (Sri Lanka CSE All Share) returns of 60.36%
stock-recommendationReal-Time Research Report
Verdict Report
How much should you sell?
  1. 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 Building Products)

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

Is Royal Ceramics Lanka Plc for you?

Medium Risk, Low Return

Absolute
Risk Adjusted
Volatility
Royal Ceramics Lanka Plc
-100.0%
0.89
28.30%
Sri Lanka CSE All Share
60.36%
3.50
17.24%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors
Factor
Value
Sales Growth (5y)
13.91%
EBIT Growth (5y)
3.43%
EBIT to Interest (avg)
6.66
Debt to EBITDA (avg)
1.13
Net Debt to Equity (avg)
0.53
Sales to Capital Employed (avg)
0.86
Tax Ratio
38.06%
Dividend Payout Ratio
35.08%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
24.20%
ROE (avg)
24.60%
stock-recommendationValuation
Valuation Scorecard stock-summary
stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
1.04
EV to EBIT
12.53
EV to EBITDA
8.57
EV to Capital Employed
1.02
EV to Sales
1.27
PEG Ratio
NA
Dividend Yield
0.04%
ROCE (Latest)
8.17%
ROE (Latest)
12.66%
stock-recommendationTechnicals
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend
Financial Trend Scorecard stock-summary
stock-recommendation
Financial Trend scale:

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

0What is working for the Company
Icon
NO KEY POSITIVE TRIGGERS
-9What is not working for the Company
INTEREST(Q)

At LKR 641.16 MM has Grown at 16.74%

INTEREST COVERAGE RATIO(Q)

Lowest at 303.88

RAW MATERIAL COST(Y)

Grown by 6.03% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 58.84 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.32%

OPERATING PROFIT MARGIN(Q)

Lowest at 13.69 %

PRE-TAX PROFIT(Q)

Lowest at LKR 726.68 MM

Here's what is working for Royal Ceramics Lanka Plc
Depreciation
Highest at LKR 822.85 MM
in the last five periods
MOJO Watch
The expenditure on assets done by the company may have gone into operation

Depreciation (LKR MM)

Here's what is not working for Royal Ceramics Lanka Plc
Interest
At LKR 641.16 MM has Grown at 16.74%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Interest Coverage Ratio
Lowest at 303.88
in the last five periods
MOJO Watch
The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin
Lowest at 13.69 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit
Lowest at LKR 726.68 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (LKR MM)

Debt-Equity Ratio
Highest at 58.84 %
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

Inventory Turnover Ratio
Lowest at 1.32%
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost
Grown by 6.03% (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

Non Operating Income
Highest at LKR 0.33 MM
in the last five periods
MOJO Watch
Increased income from non business activities may not be sustainable

Non Operating income

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