Sunshine Holdings Plc (SUN.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

Sunshine Holdings Plc

Muller & Phipps (Ceylon) Plc

Why is Sunshine Holdings Plc ?

High Management Efficiency with a high ROE of 30.18%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 8.73

Healthy long term growth as Net Sales has grown by an annual rate of 23.64%

Flat results in Jun 25

INVENTORY TURNOVER RATIO(HY) Lowest at 3.18%
DEBTORS TURNOVER RATIO(HY) Lowest at 4.67%

With ROE of 32.37%, it has a expensive valuation with a 3.40 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 70.95%, its profits have risen by 7.4%
At the current price, the company has a high dividend yield of 0.1

Consistent Returns over the last 3 years

Along with generating 70.95% returns in the last 1 year, the stock has outperformed Sri Lanka CSE All Share in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sunshine Holdings Plc should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Sunshine Holdings Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sunshine Holdings Plc

68.74%

1.50

85.26%

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)

23.64%

EBIT Growth (5y)

29.20%

EBIT to Interest (avg)

8.73

Debt to EBITDA (avg)

0.19

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

2.15

Tax Ratio

34.07%

Dividend Payout Ratio

45.26%

Pledged Shares

Institutional Holding

ROCE (avg)

39.69%

ROE (avg)

30.18%

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

3.40

EV to EBIT

6.68

EV to EBITDA

5.78

EV to Capital Employed

3.95

EV to Sales

1.04

PEG Ratio

Dividend Yield

0.07%

ROCE (Latest)

59.23%

ROE (Latest)

32.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 5,818.23 MM

INTEREST COVERAGE RATIO(Q)

Highest at 2,148.63

RAW MATERIAL COST(Y)

Fallen by -9.89% (YoY

CASH AND EQV(HY)

Highest at LKR 21,076.88 MM

DEBT-EQUITY RATIO (HY)

Lowest at -18.76 %

NET SALES(Q)

Highest at LKR 15,893.26 MM

-4What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.18%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.67%

Here's what is working for Sunshine Holdings Plc

Interest Coverage Ratio

Highest at 2,148.63

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 5,818.23 MM

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 15,893.26 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Cash and Eqv

Highest at LKR 21,076.88 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -18.76 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -9.89% (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

Highest at LKR 441.26 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (LKR MM)

Depreciation

At LKR 441.26 MM has Grown at 42.2%

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 Sunshine Holdings Plc

Inventory Turnover Ratio

Lowest at 3.18% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.67% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio