Tokyo Cement Co. (Lanka) Plc (TKYO.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

Vallibel One Plc

Tokyo Cement Co. (Lanka) Plc

Why is Tokyo Cement Co. (Lanka) Plc ?

High Management Efficiency with a high ROCE of 19.04%

Poor long term growth as Net Sales has grown by an annual rate of 7.66% over the last 5 years

Negative results in Mar 26

OPERATING CASH FLOW(Y) Lowest at LKR 1,526.82 MM
NET PROFIT(HY) At LKR 901.28 MM has Grown at -46.08%
ROCE(HY) Lowest at 8.35%

With ROE of 8.60%, it has a very expensive valuation with a 0.83 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -3.06%, its profits have fallen by -24.2%

Below par performance in long term as well as near term

Along with generating -3.06% returns in the last 1 year, the stock has also underperformed Sri Lanka CSE All Share in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tokyo Cement Co. (Lanka) Plc should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

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

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

Is Tokyo Cement Co. (Lanka) Plc for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Tokyo Cement Co. (Lanka) Plc

-3.06%

2.22

26.44%

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)

7.66%

EBIT Growth (5y)

-10.49%

EBIT to Interest (avg)

3.95

Debt to EBITDA (avg)

1.40

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

1.20

Tax Ratio

30.13%

Dividend Payout Ratio

42.89%

Pledged Shares

Institutional Holding

0.10%

ROCE (avg)

16.22%

ROE (avg)

12.86%

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

0.83

EV to EBIT

9.69

EV to EBITDA

6.10

EV to Capital Employed

0.88

EV to Sales

0.65

PEG Ratio

Dividend Yield

ROCE (Latest)

9.03%

ROE (Latest)

8.60%

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

No Trend

OBV

No Trend

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

5What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 193.33%

DIVIDEND PER SHARE(HY)

Highest at LKR 10.07

NET SALES(Q)

Highest at LKR 17,622.5 MM

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR 1,526.82 MM

NET PROFIT(HY)

At LKR 901.28 MM has Grown at -46.08%

ROCE(HY)

Lowest at 8.35%

RAW MATERIAL COST(Y)

Grown by 11% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 48.38 %

INTEREST(Q)

Highest at LKR 448.64 MM

Here's what is working for Tokyo Cement Co. (Lanka) Plc

Dividend per share

Highest at LKR 10.07 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (LKR)

Dividend Payout Ratio

Highest at 193.33% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Net Sales

Highest at LKR 17,622.5 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Here's what is not working for Tokyo Cement Co. (Lanka) Plc

Operating Cash Flow

Lowest at LKR 1,526.82 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (LKR MM)

Interest

At LKR 448.64 MM has Grown at 11.02%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Net Profit

At LKR 901.28 MM has Grown at -46.08%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)

Interest

Highest at LKR 448.64 MM

in the last five periods and Increased by 11.02% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Debt-Equity Ratio

Highest at 48.38 %

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

Raw Material Cost

Grown by 11% (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