The Ceylon Guardian Investment Trust PLC (GUAR.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

The Ceylon Guardian Investment Trust PLC

Ceylon Investment Plc

Colombo Investment Trust Plc

Galle Face Capital Partners PLC

First Capital Holdings Plc

Ceylon Land & Equity Plc

Why is The Ceylon Guardian Investment Trust PLC ?

Strong Long Term Fundamental Strength with a 162.03% CAGR growth in Operating Profits

OPERATING CASH FLOW(Y) Highest at LKR 1,598.43 MM
NET SALES(HY) Higher at LKR 4,066.86 MM
NET PROFIT(HY) Higher at LKR 3,011.62 MM

With ROE of 18.26%, it has a very attractive valuation with a 0.77 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 134.51%, its profits have risen by 60.7% ; the PEG ratio of the company is 0.1

Consistent Returns over the last 3 years

Along with generating 134.51% 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 buy?

Overall Portfolio exposure to The Ceylon Guardian Investment Trust PLC should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

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

Is The Ceylon Guardian Investment Trust PLC for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

The Ceylon Guardian Investment Trust PLC

135.03%

3.62

42.96%

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)

130.69%

EBIT Growth (5y)

162.03%

EBIT to Interest (avg)

92.76

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.20

Tax Ratio

5.71%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

67.15%

ROE (avg)

18.85%

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

0.77

EV to EBIT

0.97

EV to EBITDA

0.97

EV to Capital Employed

0.45

EV to Sales

0.89

PEG Ratio

0.07

Dividend Yield

0.07%

ROCE (Latest)

45.87%

ROE (Latest)

18.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

19What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 1,598.43 MM

NET SALES(HY)

Higher at LKR 4,066.86 MM

NET PROFIT(HY)

Higher at LKR 3,011.62 MM

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

CASH AND EQV(HY)

Highest at LKR 31,062.18 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 197.53%

-8What is not working for the Company

NET SALES(Q)

At LKR 554.08 MM has Fallen at -46.68%

INTEREST(Q)

At LKR 10.02 MM has Grown at 533.86%

NET PROFIT(Q)

At LKR 269.95 MM has Fallen at -61.06%

DEBT-EQUITY RATIO (HY)

Highest at -52.8 %

PRE-TAX PROFIT(Q)

Fallen at -56.6%

Here's what is working for The Ceylon Guardian Investment Trust PLC

Operating Cash Flow

Highest at LKR 1,598.43 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (LKR MM)

Cash and Eqv

Highest at LKR 31,062.18 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 197.53%

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 0% (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 The Ceylon Guardian Investment Trust PLC

Net Sales

At LKR 554.08 MM has Fallen at -46.68%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (LKR MM)

Interest

At LKR 10.02 MM has Grown at 533.86%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Net Profit

At LKR 269.95 MM has Fallen at -61.06%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (LKR MM)

Pre-Tax Profit

Fallen at -56.6%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (LKR MM)

Debt-Equity Ratio

Highest at -52.8 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio