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

Hayleys Fabric Plc

Ambeon Holdings Plc

Teejay Lanka Plc

Why is Teejay Lanka Plc ?

Poor long term growth as Operating profit has grown by an annual rate -145.61% of over the last 5 years

With a fall in Net Sales of -0.5%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 4 consecutive quarters
The company has declared negative results in Jun 25 after 5 consecutive negative quarters
NET PROFIT(HY) At LKR -37.91 MM has Grown at -101.81%
OPERATING CASH FLOW(Y) Lowest at LKR 2,815.92 MM
ROCE(HY) Lowest at 0.17%

Underperformed the market in the last 1 year

Even though the market (Sri Lanka CSE All Share) has generated returns of 11.95% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -37.24% returns

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?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Teejay Lanka Plc

-37.24%

-0.98

25.55%

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)

13.52%

EBIT Growth (5y)

-145.61%

EBIT to Interest (avg)

3.80

Debt to EBITDA (avg)

0.44

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

1.63

Tax Ratio

83.08%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.33%

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

147

Industry P/E

Price to Book Value

0.70

EV to EBIT

-492.04

EV to EBITDA

-492.04

EV to Capital Employed

0.69

EV to Sales

0.37

PEG Ratio

Dividend Yield

0.47%

ROCE (Latest)

-0.14%

ROE (Latest)

0.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

2What is working for the Company

PRE-TAX PROFIT(Q)

At LKR 618.66 MM has Grown at 61.18%

NET PROFIT(Q)

At LKR 395.8 MM has Grown at 74.78%

-21What is not working for the Company

NET PROFIT(HY)

At LKR -37.91 MM has Grown at -101.81%

OPERATING CASH FLOW(Y)

Lowest at LKR 2,815.92 MM

ROCE(HY)

Lowest at 0.17%

NET SALES(Q)

Lowest at LKR 14,359.84 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 15.06% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.65 times

DIVIDEND PER SHARE(HY)

Lowest at LKR 4.65

INTEREST(Q)

Highest at LKR 201.85 MM

Here's what is working for Teejay Lanka Plc

Pre-Tax Profit

At LKR 618.66 MM has Grown at 61.18%

over average net sales of the previous four periods of LKR 383.84 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

At LKR 395.8 MM has Grown at 74.78%

over average net sales of the previous four periods of LKR 226.45 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

Here's what is not working for Teejay Lanka Plc

Net Sales

Lowest at LKR 14,359.84 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (LKR MM)

Interest

At LKR 201.85 MM has Grown at 15.63%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Operating Cash Flow

Lowest at LKR 2,815.92 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (LKR MM)

Interest

Highest at LKR 201.85 MM

in the last five periods and Increased by 15.63% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Debtors Turnover Ratio

Lowest at 4.65 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at LKR 4.65

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (LKR)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 15.06% (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

Non Operating Income

Highest at LKR 1.91 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income