Sarvodaya Development Finance Ltd. () 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

Sarvodaya Development Finance Ltd.

Why is Sarvodaya Development Finance Ltd. ?

Strong Long Term Fundamental Strength with a 31.85% CAGR growth in Net Sales

With ROE of 11.81%, it has a fair valuation with a 0.00 Price to Book Value

Over the past year, while the stock has generated a return of 96.08%, its profits have risen by 92.7%

Market Beating Performance

The stock has generated a return of 96.08% in the last 1 year, much higher than market (Sri Lanka CSE All Share) returns of 41.16%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Sarvodaya Development Finance Ltd. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

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

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

Is Sarvodaya Development Finance Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sarvodaya Development Finance Ltd.

92.31%

3.70

54.24%

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)

31.85%

EBIT Growth (5y)

53.43%

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

39.50%

Dividend Payout Ratio

39.47%

Pledged Shares

Institutional Holding

ROCE (avg)

35.94%

ROE (avg)

8.38%

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

EV to EBIT

-0.80

EV to EBITDA

-0.72

EV to Capital Employed

-0.34

EV to Sales

-0.24

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

11.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

13What is working for the Company

ROCE(HY)

Highest at 16.73%

NET SALES(Q)

Highest at LKR 1,554.54 MM

PRE-TAX PROFIT(Q)

Highest at LKR 356.97 MM

NET PROFIT(Q)

Highest at LKR 212.87 MM

EPS(Q)

Highest at LKR 1.42

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR -1,313.35 MM

DEBT-EQUITY RATIO (HY)

Highest at 399.24 %

RAW MATERIAL COST(Y)

Grown by 5.49% (YoY

Here's what is working for Sarvodaya Development Finance Ltd.

Net Sales

Highest at LKR 1,554.54 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (LKR MM)

Pre-Tax Profit

Highest at LKR 356.97 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 356.97 MM has Grown at 80.31%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

Highest at LKR 212.87 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

Net Profit

At LKR 212.87 MM has Grown at 72.09%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS

Highest at LKR 1.42

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Here's what is not working for Sarvodaya Development Finance Ltd.

Operating Cash Flow

Lowest at LKR -1,313.35 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 399.24 % and Grown

In each half year 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

Raw Material Cost

Grown by 5.49% (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