United Motors Lanka Ltd.

Market Cap: Large Cap
Industry: Retailing
ISIN: LK0183N00000

LKR

29.40

0.5 (1.73%)

May 29

COL

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Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sathosa Motors Plc

Diesel & Motor Engineering Plc

United Motors Lanka Ltd.

C M Holdings Plc

Why is United Motors Lanka Ltd. ?

Flat results in Dec 25

RAW MATERIAL COST(Y) Grown by 42.49% (YoY)

With ROE of 5.99%, it has a does not qualify valuation with a 2.51 Price to Book Value

Over the past year, while the stock has generated a return of -76.48%, its profits have risen by 702% ; the PEG ratio of the company is 0.1

Below par performance in long term as well as near term

Along with generating -76.48% 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 United Motors Lanka Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is United Motors Lanka Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

United Motors Lanka Ltd.

-76.48%

-0.54

108.55%

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)

-3.15%

EBIT Growth (5y)

-13.19%

EBIT to Interest (avg)

2.40

Debt to EBITDA (avg)

2.94

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

1.25

Tax Ratio

18.00%

Dividend Payout Ratio

50.08%

Pledged Shares

Institutional Holding

ROCE (avg)

4.19%

ROE (avg)

3.12%

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

2.51

EV to EBIT

46.14

EV to EBITDA

30.52

EV to Capital Employed

2.62

EV to Sales

2.30

PEG Ratio

0.06

Dividend Yield

0.06%

ROCE (Latest)

5.68%

ROE (Latest)

5.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-1What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 42.49% (YoY

Here's what is not working for United Motors Lanka Ltd.

Raw Material Cost

Grown by 42.49% (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