Sri Lanka Telecom Plc (SLTL.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

Sri Lanka Telecom Plc

Why is Sri Lanka Telecom Plc ?

With a growth in Net Sales of 7.92%, the company declared Very Positive results in Sep 25

The company has declared positive results for the last 2 consecutive quarters
NET PROFIT(HY) At LKR 4,460 MM has Grown at 627.57%
OPERATING CASH FLOW(Y) Highest at LKR 36,422 MM
INTEREST COVERAGE RATIO(Q) Highest at 672.86

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 44.86%, its profits have risen by 350.2% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How 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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sri Lanka Telecom Plc

47.39%

0.21

36.42%

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)

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

Institutional Holding

ROCE (avg)

7.71%

ROE (avg)

6.23%

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

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%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

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

22What is working for the Company

NET PROFIT(HY)

At LKR 4,460 MM has Grown at 627.57%

OPERATING CASH FLOW(Y)

Highest at LKR 36,422 MM

INTEREST COVERAGE RATIO(Q)

Highest at 672.86

ROCE(HY)

Highest at 9.44%

RAW MATERIAL COST(Y)

Fallen by -9.3% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 70.28 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.42 times

NET SALES(Q)

Highest at LKR 29,479 MM

PRE-TAX PROFIT(Q)

Highest at LKR 3,793 MM

-1What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Sri Lanka Telecom Plc

Net Profit

At LKR 4,460 MM has Grown at 627.57%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (LKR MM)

Interest Coverage Ratio

Highest at 672.86 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at LKR 36,422 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (LKR MM)

Net Sales

Highest at LKR 29,479 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Pre-Tax Profit

Highest at LKR 3,793 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Debt-Equity Ratio

Lowest at 70.28 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.42 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -9.3% (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