Teejay Lanka Plc (TJL.N0000) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ambeon Holdings Plc

Hayleys Fabric Plc

Teejay Lanka Plc

Why is Teejay Lanka Plc ?

Poor long term growth as Operating profit has grown by an annual rate -7.50% of over the last 5 years

With a fall in Net Sales of -6.78%, the company declared Very Negative results in Dec 25

The company has declared negative results in Jan 70 after 4 consecutive negative quarters
NET PROFIT(Q) Lowest at LKR -433.71 MM
RAW MATERIAL COST(Y) Grown by 64.76% (YoY)
DEBTORS TURNOVER RATIO(HY) Lowest at 5.04 times

With ROE of 8.94%, it has a fair valuation with a 0.95 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 -34.39%, its profits have risen by 34.1% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -34.39% returns in the last 1 year, the stock has also underperformed Sri Lanka CSE All Share in each of the last 3 annual periods

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 Footwear)

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

Is Teejay Lanka Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Teejay Lanka Plc

-33.33%

-0.24

27.58%

Sri Lanka CSE All Share

41.16%

2.63

15.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.72%

EBIT Growth (5y)

-7.50%

EBIT to Interest (avg)

7.27

Debt to EBITDA (avg)

0.44

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

1.63

Tax Ratio

31.20%

Dividend Payout Ratio

60.62%

Pledged Shares

Institutional Holding

ROCE (avg)

10.36%

ROE (avg)

8.19%

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

0.95

EV to EBIT

7.76

EV to EBITDA

7.76

EV to Capital Employed

0.95

EV to Sales

0.46

PEG Ratio

0.31

Dividend Yield

0.73%

ROCE (Latest)

12.26%

ROE (Latest)

8.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

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

1What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -10.29 %

-23What is not working for the Company

NET PROFIT(Q)

Lowest at LKR -433.71 MM

RAW MATERIAL COST(Y)

Grown by 64.76% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.04 times

NET SALES(Q)

Lowest at LKR 14,432.69 MM

OPERATING PROFIT(Q)

Lowest at LKR -580.58 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -4.02 %

PRE-TAX PROFIT(Q)

Lowest at LKR -503.9 MM

EPS(Q)

Lowest at LKR -0.7

Here's what is working for Teejay Lanka Plc

Debt-Equity Ratio

Lowest at -10.29 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Teejay Lanka Plc

Pre-Tax Profit

At LKR -503.9 MM has Fallen at -159.12%

over average net sales of the previous four periods of LKR 852.4 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (LKR MM)

Net Profit

At LKR -433.71 MM has Fallen at -175.87%

over average net sales of the previous four periods of LKR 571.64 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (LKR MM)

Net Profit

Lowest at LKR -433.71 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (LKR MM)

Net Sales

Lowest at LKR 14,432.69 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (LKR MM)

Operating Profit

Lowest at LKR -580.58 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (LKR MM)

Operating Profit Margin

Lowest at -4.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at LKR -503.9 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (LKR MM)

EPS

Lowest at LKR -0.7

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (LKR)

Debtors Turnover Ratio

Lowest at 5.04 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 64.76% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales