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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sri Lanka Telecom Plc

Why is Sri Lanka Telecom Plc ?

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

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 30.13%, 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sri Lanka Telecom Plc

29.17%

0.01

34.16%

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)

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

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

21What 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 periods

MOJO 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 MM

MOJO 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 years

MOJO 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 MM

MOJO 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 periods

MOJO 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