ScoreWhy is Vallibel Power Erathna Plc ?
1
High Management Efficiency with a high ROE of 33.10%
2
Company has very low debt and has enough cash to service the debt requirements
3
Poor long term growth as Net Sales has grown by an annual rate of 7.39% and Operating profit at 5.12% over the last 5 years
4
Flat results in Mar 26
- OPERATING CASH FLOW(Y) Lowest at LKR 839.14 MM
- INTEREST COVERAGE RATIO(Q) Lowest at 336.52
- DEBT-EQUITY RATIO (HY) Highest at 9.29 %
5
With ROE of 41.47%, it has a fair valuation with a 3.36 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 11.51%, its profits have risen by 21.1% ; the PEG ratio of the company is 0.4
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Vallibel Power Erathna Plc should be less than 10%
- Overall Portfolio exposure to Power should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Vallibel Power Erathna Plc for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Vallibel Power Erathna Plc
11.51%
2.49
33.88%
Sri Lanka CSE All Share
11.95%
0.72
16.49%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.39%
EBIT Growth (5y)
5.12%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.38
Sales to Capital Employed (avg)
0.51
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
55.08%
ROE (avg)
33.10%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
3.36
EV to EBIT
10.58
EV to EBITDA
9.34
EV to Capital Employed
3.19
EV to Sales
7.26
PEG Ratio
0.38
Dividend Yield
0.07%
ROCE (Latest)
30.12%
ROE (Latest)
41.47%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend17What is working for the Company
ROCE(HY)
Highest at 44.68%
NET PROFIT(Q)
At LKR 22.52 MM has Grown at 151.89%
RAW MATERIAL COST(Y)
Fallen by 1.03% (YoY
NET SALES(Q)
At LKR 216.78 MM has Grown at 71.45%
-15What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at LKR 839.14 MM
INTEREST COVERAGE RATIO(Q)
Lowest at 336.52
DEBT-EQUITY RATIO
(HY)
Highest at 9.29 %
INTEREST(Q)
Highest at LKR 31.92 MM
Here's what is working for Vallibel Power Erathna Plc
Net Profit
At LKR 22.52 MM has Grown at 151.89%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (LKR MM)
Net Sales
At LKR 216.78 MM has Grown at 71.45%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Raw Material Cost
Fallen by 1.03% (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 Vallibel Power Erathna Plc
Operating Cash Flow
Lowest at LKR 839.14 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (LKR MM)
Interest Coverage Ratio
Lowest at 336.52
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at LKR 31.92 MM
in the last five periods and Increased by 6.78% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (LKR MM)
Debt-Equity Ratio
Highest at 9.29 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
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