ScoreWhy is Sri Lanka Telecom Plc ?
1
Poor Management Efficiency with a low ROCE of 7.71%
- The company has been able to generate a Return on Capital Employed (avg) of 7.71% signifying low profitability per unit of total capital (equity and debt)
2
Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.55 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.55 times
- The company has been able to generate a Return on Equity (avg) of 6.23% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 4.96% over the last 5 years
4
With a growth in Operating Profit of 32.05%, the company declared Very Positive results in Mar 26
- The company has declared positive results for the last 7 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at LKR 41,768 MM
- ROCE(HY) Highest at 11.23%
- DEBTORS TURNOVER RATIO(HY) Highest at 3.56 times
5
With ROE of 9.05%, it has a attractive valuation with a 1.65 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 34.06%, its profits have risen by 2063% ; the PEG ratio of the company is 0
Real-Time Research ReportHow much should you hold?
- 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
34.06%
-0.02
39.00%
Sri Lanka CSE All Share
32.72%
1.90
17.20%
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
18
Industry P/E
Price to Book Value
1.65
EV to EBIT
14.27
EV to EBITDA
5.02
EV to Capital Employed
1.39
EV to Sales
1.98
PEG Ratio
0.01
Dividend Yield
0.28%
ROCE (Latest)
9.74%
ROE (Latest)
9.05%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
OPERATING CASH FLOW(Y)
Highest at LKR 41,768 MM
ROCE(HY)
Highest at 11.23%
DEBTORS TURNOVER RATIO(HY)
Highest at 3.56 times
INTEREST COVERAGE RATIO(Q)
Highest at 722.72
RAW MATERIAL COST(Y)
Fallen by -3.22% (YoY
NET PROFIT(9M)
Higher at LKR 8,800 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 59.15 %
INVENTORY TURNOVER RATIO(HY)
Highest at 21.02 times
NET SALES(Q)
Highest at LKR 30,797 MM
OPERATING PROFIT(Q)
Highest at LKR 12,438 MM
PRE-TAX PROFIT(Q)
Highest at LKR 4,157 MM
-1What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Sri Lanka Telecom Plc
Operating Cash Flow
Highest at LKR 41,768 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (LKR MM)
Interest Coverage Ratio
Highest at 722.72
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Debtors Turnover Ratio
Highest at 3.56 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Net Sales
Highest at LKR 30,797 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Operating Profit
Highest at LKR 12,438 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (LKR MM)
Pre-Tax Profit
Highest at LKR 4,157 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (LKR MM)
Debt-Equity Ratio
Lowest at 59.15 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 21.02 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Profit
Higher at LKR 8,800 MM
than preceding 12 month period ended Mar 2026MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (LKR MM)
Raw Material Cost
Fallen by -3.22% (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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