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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Central Industries Ltd.

Lanka Ceramic Plc

Alumex Plc

Royal Ceramics Lanka Plc

Swisstek (Ceylon) Plc

Lanka Walltile 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 28.03% 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)

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 170.57%, 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

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Swisstek (Ceylon) Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Swisstek (Ceylon) Plc

173.7%

7.10

46.25%

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)

30.54%

EBIT Growth (5y)

28.03%

EBIT to Interest (avg)

3.37

Debt to EBITDA (avg)

4.16

Net Debt to Equity (avg)

1.85

Sales to Capital Employed (avg)

1.32

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

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

15What is working for the Company

ROCE(HY)

Highest at 32.97%

DEBT-EQUITY RATIO (HY)

Lowest at 189.13 %

RAW MATERIAL COST(Y)

Fallen by -3.69% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.78%

PRE-TAX PROFIT(Q)

At LKR 238.32 MM has Grown at 99.83%

NET PROFIT(Q)

At LKR 147.38 MM has Grown at 84.51%

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR -546.47 MM

INTEREST(Q)

At LKR 147.26 MM has Grown at 11.85%

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

Debt-Equity Ratio

Lowest at 189.13 % 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

Pre-Tax Profit

At LKR 238.32 MM has Grown at 99.83%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

At LKR 147.38 MM has Grown at 84.51%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

Debtors Turnover Ratio

Highest at 5.78%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -3.69% (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 66.34 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

Interest

At LKR 147.26 MM has Grown at 11.85%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Operating Cash Flow

Lowest at LKR -546.47 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (LKR MM)