ScoreWhy is Sri Lanka Telecom Plc ?
1
With a growth in Net Sales of 0.23%, the company declared Very Positive results in Mar 25
- The company has declared positive results for the last 2 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at LKR 28,150 MM
- ROCE(HY) Highest at 5.44%
- INTEREST COVERAGE RATIO(Q) Highest at 580.32
2
With ROE of 8.11%, it has a fair valuation with a 1.38 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 29.17%, its profits have risen by 350.2% ; the PEG ratio of the company is 0.1
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Sri Lanka Telecom Plc should be less than 10%
- Overall Portfolio exposure to Telecom - Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Sri Lanka Telecom Plc for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sri Lanka Telecom Plc
-100.0%
0.01
34.23%
Sri Lanka CSE All Share
60.36%
3.50
17.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.96%
EBIT Growth (5y)
7.19%
EBIT to Interest (avg)
2.40
Debt to EBITDA (avg)
2.81
Net Debt to Equity (avg)
0.80
Sales to Capital Employed (avg)
0.62
Tax Ratio
37.33%
Dividend Payout Ratio
14.48%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.71%
ROE (avg)
6.23%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
1.38
EV to EBIT
13.33
EV to EBITDA
4.57
EV to Capital Employed
1.22
EV to Sales
1.79
PEG Ratio
0.05
Dividend Yield
0.34%
ROCE (Latest)
9.14%
ROE (Latest)
8.11%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend21What is working for the Company
OPERATING CASH FLOW(Y)
Highest at LKR 28,150 MM
ROCE(HY)
Highest at 5.44%
INTEREST COVERAGE RATIO(Q)
Highest at 580.32
NET PROFIT(Q)
At LKR 2,000 MM has Grown at 156.74%
RAW MATERIAL COST(Y)
Fallen by -15.46% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 19.18%
PRE-TAX PROFIT(Q)
At LKR 2,669 MM has Grown at 76.87%
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Sri Lanka Telecom Plc
Interest Coverage Ratio
Highest at 580.32
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Profit
At LKR 2,000 MM has Grown at 156.74%
over average net sales of the previous four periods of LKR 779 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (LKR MM)
Operating Cash Flow
Highest at LKR 28,150 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (LKR MM)
Pre-Tax Profit
At LKR 2,669 MM has Grown at 76.87%
over average net sales of the previous four periods of LKR 1,509 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (LKR MM)
Inventory Turnover Ratio
Highest at 19.18%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -15.46% (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
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