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 Ceramic Plc

Alumex Plc

Lanka Walltile Plc

Why is Swisstek (Ceylon) Plc ?

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at LKR 1,428.14 MM
DEBT-EQUITY RATIO (HY) Lowest at 132.93 %
INTEREST COVERAGE RATIO(Q) Highest at 789.05

With ROE of 30.98%, it has a very attractive valuation with a 2.50 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 -32.19%, its profits have risen by 29.6% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0.3

Real-Time Research Report

Verdict Report

How much should you buy?

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?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Swisstek (Ceylon) Plc

-32.19%

6.22

32.81%

Sri Lanka CSE All Share

11.95%

0.72

16.49%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

25.72%

EBIT Growth (5y)

19.42%

EBIT to Interest (avg)

3.40

Debt to EBITDA (avg)

4.22

Net Debt to Equity (avg)

1.85

Sales to Capital Employed (avg)

1.48

Tax Ratio

26.77%

Dividend Payout Ratio

28.70%

Pledged Shares

Institutional Holding

ROCE (avg)

15.77%

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

2.50

EV to EBIT

6.66

EV to EBITDA

6.05

EV to Capital Employed

1.65

EV to Sales

0.88

PEG Ratio

0.27

Dividend Yield

0.28%

ROCE (Latest)

24.76%

ROE (Latest)

30.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly 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

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 1,428.14 MM

DEBT-EQUITY RATIO (HY)

Lowest at 132.93 %

INTEREST COVERAGE RATIO(Q)

Highest at 789.05

RAW MATERIAL COST(Y)

Fallen by -24.98% (YoY

CASH AND EQV(HY)

Highest at LKR 1,236.73 MM

NET SALES(Q)

Highest at LKR 4,579.14 MM

OPERATING PROFIT(Q)

Highest at LKR 796.04 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.38 %

PRE-TAX PROFIT(Q)

Highest at LKR 551.63 MM

NET PROFIT(Q)

Highest at LKR 327.6 MM

EPS(Q)

Highest at LKR 2.39

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.78 times

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

Interest Coverage Ratio

Highest at 789.05

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 132.93 % 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 Cash Flow

Highest at LKR 1,428.14 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 4,579.14 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Operating Profit

Highest at LKR 796.04 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (LKR MM)

Operating Profit Margin

Highest at 17.38 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at LKR 551.63 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

Highest at LKR 327.6 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS

Highest at LKR 2.39

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Cash and Eqv

Highest at LKR 1,236.73 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -24.98% (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

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

Debtors Turnover Ratio

Lowest at 4.78 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio