Sierra Cables Plc (SIRA.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

ACL Plastics PLC

Laxapana Plc

ACL Cables Plc

Sierra Cables Plc

Why is Sierra Cables Plc ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.80 times

Poor long term growth as Net Sales has grown by an annual rate of 24.36% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.80 times

Positive results in Dec 25

NET SALES(HY) At LKR 8,890.58 MM has Grown at 68.16%
ROCE(HY) Highest at 27.51%
NET PROFIT(Q) At LKR 713.52 MM has Grown at 70.89%

With ROE of 17.11%, it has a attractive valuation with a 2.30 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 92.31%, its profits have risen by 63.2% ; the PEG ratio of the company is 0.2

Market Beating performance in long term as well as near term

Along with generating 92.31% returns in the last 1 year, the stock has outperformed Sri Lanka CSE All Share in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sierra Cables Plc should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Sierra Cables Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sierra Cables Plc

97.74%

4.15

49.22%

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)

24.36%

EBIT Growth (5y)

51.36%

EBIT to Interest (avg)

3.27

Debt to EBITDA (avg)

1.80

Net Debt to Equity (avg)

0.61

Sales to Capital Employed (avg)

0.89

Tax Ratio

30.73%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

18.73%

ROE (avg)

15.59%

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

2.30

EV to EBIT

13.52

EV to EBITDA

12.18

EV to Capital Employed

1.70

EV to Sales

2.01

PEG Ratio

0.21

Dividend Yield

ROCE (Latest)

12.58%

ROE (Latest)

17.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

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

16What is working for the Company

NET SALES(HY)

At LKR 8,890.58 MM has Grown at 68.16%

ROCE(HY)

Highest at 27.51%

NET PROFIT(Q)

At LKR 713.52 MM has Grown at 70.89%

-5What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 110.95 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.59 times

RAW MATERIAL COST(Y)

Grown by 14.87% (YoY

Here's what is working for Sierra Cables Plc

Net Sales

At LKR 8,890.58 MM has Grown at 68.16%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Net Profit

At LKR 713.52 MM has Grown at 70.89%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

Here's what is not working for Sierra Cables Plc

Debt-Equity Ratio

Highest at 110.95 % 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

Debtors Turnover Ratio

Lowest at 1.59 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 14.87% (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