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 34.37% CAGR growth in Net Sales

Positive results in Mar 26

ROCE(HY) Highest at 19.6%
NET SALES(Q) Highest at LKR 1,730.45 MM
RAW MATERIAL COST(Y) Fallen by 1.71% (YoY)

With ROE of 18.54%, it has a attractive valuation with a 0.00 Price to Book Value

Over the past year, while the stock has generated a return of 21.88%, its profits have risen by 73.1%

Consistent Returns over the last 3 years

Along with generating 21.88% returns in the last 1 year, the stock has outperformed Sri Lanka CSE All Share in each of the last 3 annual periods

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.

21.88%

3.69

52.41%

Sri Lanka CSE All Share

11.95%

0.72

16.49%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

34.37%

EBIT Growth (5y)

73.67%

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

39.74%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

58.71%

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

-1.40

EV to EBITDA

-1.28

EV to Capital Employed

-1.51

EV to Sales

-0.45

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

18.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

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

17What is working for the Company

ROCE(HY)

Highest at 19.6%

NET SALES(Q)

Highest at LKR 1,730.45 MM

RAW MATERIAL COST(Y)

Fallen by 1.71% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 24.18 times

PRE-TAX PROFIT(Q)

Highest at LKR 437.76 MM

NET PROFIT(Q)

Highest at LKR 266.67 MM

EPS(Q)

Highest at LKR 1.78

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR -1,026.42 MM

DEBT-EQUITY RATIO (HY)

Highest at 409.55 %

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DIVIDEND PER SHARE(HY)

Lowest at LKR 24.18

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

Net Sales

Highest at LKR 1,730.45 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 437.76 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 437.76 MM has Grown at 99.29%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

Highest at LKR 266.67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

Net Profit

At LKR 266.67 MM has Grown at 98.45%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS

Highest at LKR 1.78

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Debtors Turnover Ratio

Highest at 24.18 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 1.71% (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

Depreciation

Highest at LKR 47.84 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 Sarvodaya Development Finance Ltd.

Operating Cash Flow

Lowest at LKR -1,026.42 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 409.55 % 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

Dividend per share

Lowest at LKR 24.18

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (LKR)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)