Union Chemicals Lanka Plc (UCAR.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

Union Chemicals Lanka Plc

Why is Union Chemicals Lanka Plc ?

Negative results in Dec 25

INTEREST(HY) At LKR 0.59 MM has Grown at 443.12%
OPERATING CASH FLOW(Y) Lowest at LKR 204.37 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 5.36 times

With ROE of 16.82%, it has a very attractive valuation with a 0.00 Price to Book Value

Over the past year, while the stock has generated a return of 127.30%, its profits have fallen by -2.4%

Market Beating performance in long term as well as near term

Along with generating 127.30% returns in the last 1 year, the stock has outperformed 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 Union Chemicals Lanka Plc should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

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

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

Is Union Chemicals Lanka Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Union Chemicals Lanka Plc

127.3%

3.46

48.82%

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)

9.17%

EBIT Growth (5y)

18.80%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.34

Sales to Capital Employed (avg)

1.30

Tax Ratio

34.02%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

34.57%

ROE (avg)

17.99%

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

EV to EBIT

-1.50

EV to EBITDA

-1.42

EV to Capital Employed

-0.47

EV to Sales

-0.27

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

16.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

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

7What is working for the Company

OPERATING PROFIT MARGIN(Q)

Highest at 24.64 %

RAW MATERIAL COST(Y)

Fallen by -12.36% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.8 times

OPERATING PROFIT(Q)

Highest at LKR 93.65 MM

PRE-TAX PROFIT(Q)

Highest at LKR 114.06 MM

NET PROFIT(Q)

Highest at LKR 75.24 MM

-17What is not working for the Company

INTEREST(HY)

At LKR 0.59 MM has Grown at 443.12%

OPERATING CASH FLOW(Y)

Lowest at LKR 204.37 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.36 times

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBT-EQUITY RATIO (HY)

Highest at -1.88 %

DIVIDEND PER SHARE(HY)

Lowest at LKR 5.36

EPS(Q)

Lowest at LKR 0

Here's what is working for Union Chemicals Lanka Plc

Operating Profit Margin

Highest at 24.64 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Operating Profit

Highest at LKR 93.65 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (LKR MM)

Pre-Tax Profit

Highest at LKR 114.06 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

Highest at LKR 75.24 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

Inventory Turnover Ratio

Highest at 2.8 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -12.36% (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 Union Chemicals Lanka Plc

Interest

At LKR 0.59 MM has Grown at 443.12%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Operating Cash Flow

Lowest at LKR 204.37 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)

Debtors Turnover Ratio

Lowest at 5.36 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

EPS

Lowest at LKR 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (LKR)

Debt-Equity Ratio

Highest at -1.88 %

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

Dividend per share

Lowest at LKR 5.36

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 (%)