Sathosa Motors Plc (SMOT.N0000) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

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

Sathosa Motors Plc

C M Holdings Plc

Diesel & Motor Engineering Plc

United Motors Lanka Ltd.

Why is Sathosa Motors Plc ?

With a growth in Operating Profit of 1140.11%, the company declared Outstanding results in Jun 25

NET SALES(Q) Highest at LKR 2,273.85 MM
OPERATING PROFIT(Q) Highest at LKR 266.45 MM
PRE-TAX PROFIT(Q) At LKR 200.34 MM has Grown at 101.55%

With ROE of 10.47%, it has a very expensive valuation with a 0.00 Price to Book Value

Over the past year, while the stock has generated a return of 416.80%, its profits have fallen by -33.3%

Consistent Returns over the last 3 years

Along with generating 416.80% 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 hold?

Overall Portfolio exposure to Sathosa Motors Plc should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Sathosa Motors Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sathosa Motors Plc

-100.0%

8.26

82.75%

Sri Lanka CSE All Share

60.36%

3.50

17.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.27%

EBIT Growth (5y)

172.19%

EBIT to Interest (avg)

0.77

Debt to EBITDA (avg)

3.99

Net Debt to Equity (avg)

0.29

Sales to Capital Employed (avg)

0.99

Tax Ratio

32.92%

Dividend Payout Ratio

30.38%

Pledged Shares

Institutional Holding

ROCE (avg)

4.85%

ROE (avg)

4.41%

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

4.85

EV to EBITDA

3.71

EV to Capital Employed

0.49

EV to Sales

0.48

PEG Ratio

Dividend Yield

ROCE (Latest)

10.10%

ROE (Latest)

10.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

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

14What is working for the Company

NET SALES(Q)

Highest at LKR 2,273.85 MM

OPERATING PROFIT(Q)

Highest at LKR 266.45 MM

PRE-TAX PROFIT(Q)

At LKR 200.34 MM has Grown at 101.55%

NET PROFIT(Q)

At LKR 130.63 MM has Grown at 92.99%

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR -119.43 MM

NET PROFIT(HY)

At LKR 150.53 MM has Grown at -49.17%

RAW MATERIAL COST(Y)

Grown by 49.59% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 97.3 %

INTEREST(Q)

Highest at LKR 42.08 MM

Here's what is working for Sathosa Motors Plc

Net Sales

At LKR 2,273.85 MM has Grown at 205.93%

over average net sales of the previous four periods of LKR 743.25 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (LKR MM)

Net Sales

Highest at LKR 2,273.85 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Operating Profit

Highest at LKR 266.45 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (LKR MM)

Pre-Tax Profit

At LKR 200.34 MM has Grown at 101.55%

over average net sales of the previous four periods of LKR 99.4 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

At LKR 130.63 MM has Grown at 92.99%

over average net sales of the previous four periods of LKR 67.69 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

Depreciation

Highest at LKR 45.1 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (LKR MM)

Depreciation

At LKR 45.1 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (LKR MM)

Here's what is not working for Sathosa Motors Plc

Interest

At LKR 42.08 MM has Grown at 44.82%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Operating Cash Flow

Lowest at LKR -119.43 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (LKR MM)

Interest

Highest at LKR 42.08 MM

in the last five periods and Increased by 44.82% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Debt-Equity Ratio

Highest at 97.3 %

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 49.59% (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