Swisstek (Ceylon) Plc (PARQ.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

Royal Ceramics Lanka Plc

Swisstek (Ceylon) Plc

Central Industries Ltd.

Lanka Walltile Plc

Lanka Ceramic Plc

Alumex Plc

Why is Swisstek (Ceylon) Plc ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate 24.63% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 14.73% signifying low profitability per unit of total capital (equity and debt)

The company has declared Positive results for the last 5 consecutive quarters

DEBT-EQUITY RATIO (HY) Lowest at 148.43 %
RAW MATERIAL COST(Y) Fallen by -13.39% (YoY)
CASH AND EQV(HY) Highest at LKR 1,221.11 MM

With ROE of 31.06%, it has a very expensive valuation with a 4.02 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 73.33%, its profits have risen by 748.2% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 0.2

Consistent Returns over the last 3 years

Along with generating 73.33% 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 Swisstek (Ceylon) Plc should be less than 10%
Overall Portfolio exposure to Non - Ferrous Metals should be less than 30%

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

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

Is Swisstek (Ceylon) Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Swisstek (Ceylon) Plc

73.33%

6.24

42.42%

Sri Lanka CSE All Share

42.22%

2.51

16.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

29.88%

EBIT Growth (5y)

24.63%

EBIT to Interest (avg)

3.37

Debt to EBITDA (avg)

4.16

Net Debt to Equity (avg)

1.85

Sales to Capital Employed (avg)

1.39

Tax Ratio

25.69%

Dividend Payout Ratio

23.73%

Pledged Shares

Institutional Holding

ROCE (avg)

14.73%

ROE (avg)

16.30%

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

4.02

EV to EBIT

10.46

EV to EBITDA

9.19

EV to Capital Employed

2.05

EV to Sales

1.21

PEG Ratio

0.02

Dividend Yield

0.21%

ROCE (Latest)

19.59%

ROE (Latest)

31.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

6What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 148.43 %

RAW MATERIAL COST(Y)

Fallen by -13.39% (YoY

CASH AND EQV(HY)

Highest at LKR 1,221.11 MM

OPERATING PROFIT(Q)

Highest at LKR 652.22 MM

OPERATING PROFIT MARGIN(Q)

Highest at 15.2 %

-1What is not working for the Company

DIVIDEND PER SHARE(HY)

Lowest at LKR 4.79

Here's what is working for Swisstek (Ceylon) Plc

Debt-Equity Ratio

Lowest at 148.43 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Operating Profit

Highest at LKR 652.22 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (LKR MM)

Operating Profit Margin

Highest at 15.2 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at LKR 1,221.11 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -13.39% (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 71.94 MM

in the last five periods

MOJO Watch

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

Depreciation (LKR MM)

Here's what is not working for Swisstek (Ceylon) Plc

Dividend per share

Lowest at LKR 4.79

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (LKR)