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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Laxapana Plc

Sierra Cables Plc

ACL Plastics PLC

ACL Cables Plc

Why is Sierra Cables Plc ?

With a growth in Net Profit of 124.17%, the company declared Very Positive results in Jun 25

RAW MATERIAL COST(Y) Fallen by -11.15% (YoY)
CASH AND EQV(HY) Highest at LKR 1,555.41 MM
NET SALES(Q) Highest at LKR 2,901.28 MM

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 192.04%, 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 192.04% 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 buy?

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

194.64%

3.65

51.20%

Sri Lanka CSE All Share

60.36%

3.56

17.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.56%

EBIT Growth (5y)

43.57%

EBIT to Interest (avg)

3.27

Debt to EBITDA (avg)

1.80

Net Debt to Equity (avg)

0.61

Sales to Capital Employed (avg)

0.93

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

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Mildly 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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -11.15% (YoY

CASH AND EQV(HY)

Highest at LKR 1,555.41 MM

NET SALES(Q)

Highest at LKR 2,901.28 MM

NET PROFIT(Q)

Highest at LKR 417.88 MM

EPS(Q)

Highest at LKR 0.78

-2What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 85.81 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.75%

Here's what is working for Sierra Cables Plc

Net Sales

Highest at LKR 2,901.28 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Net Sales

At LKR 2,901.28 MM has Grown at 68.18%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Net Profit

Highest at LKR 417.88 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

Net Profit

At LKR 417.88 MM has Grown at 124.17%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS

Highest at LKR 0.78

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Cash and Eqv

Highest at LKR 1,555.41 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -11.15% (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

At LKR 44.18 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 Sierra Cables Plc

Debt-Equity Ratio

Highest at 85.81 %

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 1.75%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio