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 ?

Flat results in Mar 26

INTEREST(HY) At LKR 0.45 MM has Grown at 334.62%
DEBT-EQUITY RATIO (HY) Highest at -16.99 %
DEBTORS TURNOVER RATIO(HY) Lowest at 5.04 times

With ROE of 18.36%, it has a attractive valuation with a 0.00 Price to Book Value

Over the past year, while the stock has generated a return of 232.35%, its profits have risen by 13.9%

Market Beating performance in long term as well as near term

Along with generating 232.35% 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

232.35%

5.92

55.59%

Sri Lanka CSE All Share

32.72%

1.90

17.20%

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)

1.25

Tax Ratio

34.02%

Dividend Payout Ratio

44.72%

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

-0.08

EV to EBITDA

-0.08

EV to Capital Employed

-0.02

EV to Sales

-0.02

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

18.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly 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

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -13.91% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.9 times

NET SALES(Q)

Highest at LKR 496.27 MM

OPERATING PROFIT(Q)

Highest at LKR 117.72 MM

PRE-TAX PROFIT(Q)

Highest at LKR 130.91 MM

NET PROFIT(Q)

Highest at LKR 86.4 MM

EPS(Q)

Highest at LKR 57.77

-10What is not working for the Company

INTEREST(HY)

At LKR 0.45 MM has Grown at 334.62%

DEBT-EQUITY RATIO (HY)

Highest at -16.99 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.04 times

Here's what is working for Union Chemicals Lanka Plc

Net Sales

Highest at LKR 496.27 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Operating Profit

Highest at LKR 117.72 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 130.91 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 86.4 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS

Highest at LKR 57.77

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Inventory Turnover Ratio

Highest at 2.9 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 -13.91% (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

Depreciation

Highest at LKR 10.14 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (LKR MM)

Depreciation

At LKR 10.14 MM has Grown at 45.98%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (LKR MM)

Here's what is not working for Union Chemicals Lanka Plc

Interest

At LKR 0.45 MM has Grown at 334.62%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Debt-Equity Ratio

Highest at -16.99 %

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

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