ScoreWhy is Royal Ceramics Lanka Plc ?
1
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 25.06%, its profits have fallen by -31.4%
2
Underperformed the market in the last 1 year
- The stock has generated a return of 25.06% in the last 1 year, much lower than market (Sri Lanka CSE All Share) returns of 41.16%
Real-Time Research ReportHow 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 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, Medium Return
Absolute
Risk Adjusted
Volatility
Royal Ceramics Lanka Plc
24.44%
1.68
26.12%
Sri Lanka CSE All Share
41.16%
2.63
15.67%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
11.04%
EBIT Growth (5y)
0.70%
EBIT to Interest (avg)
6.66
Debt to EBITDA (avg)
1.13
Net Debt to Equity (avg)
0.53
Sales to Capital Employed (avg)
0.84
Tax Ratio
38.06%
Dividend Payout Ratio
35.08%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
24.20%
ROE (avg)
24.60%
ValuationValuation Key Factors 
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%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 523.24
RAW MATERIAL COST(Y)
Fallen by -14.17% (YoY
NET SALES(Q)
Highest at LKR 18,048.07 MM
OPERATING PROFIT(Q)
Highest at LKR 3,477.99 MM
OPERATING PROFIT MARGIN(Q)
Highest at 19.27 %
PRE-TAX PROFIT(Q)
Highest at LKR 2,065.18 MM
NET PROFIT(Q)
Highest at LKR 1,892.89 MM
EPS(Q)
Highest at LKR 1.71
-3What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 0%
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.28 times
DIVIDEND PER SHARE(HY)
Lowest at LKR 8.25
Here's what is working for Royal Ceramics Lanka Plc
Interest Coverage Ratio
Highest at 523.24
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at LKR 18,048.07 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Operating Profit
Highest at LKR 3,477.99 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (LKR MM)
Operating Profit Margin
Highest at 19.27 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at LKR 2,065.18 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (LKR MM)
Net Profit
Highest at LKR 1,892.89 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (LKR MM)
EPS
Highest at LKR 1.71
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (LKR)
Raw Material Cost
Fallen by -14.17% (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 Royal Ceramics Lanka Plc
Inventory Turnover Ratio
Lowest at 1.28 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Dividend per share
Lowest at LKR 8.25
in the last five yearsMOJO Watch
Company is distributing lower dividend than previous years
DPS (LKR)
Dividend Payout Ratio
Lowest at 0%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
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