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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sathosa Motors Plc

Diesel & Motor Engineering Plc

C M Holdings Plc

United Motors Lanka Ltd.

Why is Sathosa Motors Plc ?

With a growth in Net Profit of 162.8%, the company declared Outstanding results in Dec 25

NET SALES(Q) At LKR 6,408.2 MM has Grown at 117.4%
ROCE(HY) Highest at 50.73%
PRE-TAX PROFIT(Q) At LKR 847.09 MM has Grown at 155.48%

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 233.63%, its profits have fallen by -33.3%

Consistent Returns over the last 3 years

Along with generating 233.63% 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 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

233.63%

8.10

76.52%

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)

33.99%

EBIT Growth (5y)

139.47%

EBIT to Interest (avg)

0.77

Debt to EBITDA (avg)

3.99

Net Debt to Equity (avg)

0.29

Sales to Capital Employed (avg)

1.21

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

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

36What is working for the Company

NET SALES(Q)

At LKR 6,408.2 MM has Grown at 117.4%

ROCE(HY)

Highest at 50.73%

PRE-TAX PROFIT(Q)

At LKR 847.09 MM has Grown at 155.48%

NET PROFIT(Q)

At LKR 539.59 MM has Grown at 177.42%

CASH AND EQV(HY)

Highest at LKR 913.93 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 4.91 times

DEBTORS TURNOVER RATIO(HY)

Highest at 14.43 times

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR -520.45 MM

INTEREST(HY)

At LKR 110.09 MM has Grown at 55.13%

RAW MATERIAL COST(Y)

Grown by 60.26% (YoY

Here's what is working for Sathosa Motors Plc

Net Sales

At LKR 6,408.2 MM has Grown at 117.4%

over average net sales of the previous four periods of LKR 2,947.6 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (LKR MM)

Pre-Tax Profit

At LKR 847.09 MM has Grown at 155.48%

over average net sales of the previous four periods of LKR 331.57 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (LKR MM)

Net Profit

At LKR 539.59 MM has Grown at 177.42%

over average net sales of the previous four periods of LKR 194.5 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (LKR MM)

Cash and Eqv

Highest at LKR 913.93 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 4.91 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 14.43 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Sathosa Motors Plc

Interest

At LKR 110.09 MM has Grown at 55.13%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Operating Cash Flow

Lowest at LKR -520.45 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (LKR MM)

Raw Material Cost

Grown by 60.26% (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