ScoreWhy is Watawala Plantations Plc ?
1
High Management Efficiency with a high ROE of 44.12%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 30.26
3
Flat results in Mar 26
- INTEREST(HY) At LKR 114.47 MM has Grown at 50.27%
- INTEREST COVERAGE RATIO(Q) Lowest at 1,275.26
- DEBT-EQUITY RATIO (HY) Highest at 36.65 %
4
With ROE of 85.17%, it has a very attractive valuation with a 16.09 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 30.30%, its profits have risen by 16.6% ; the PEG ratio of the company is 1.1
- At the current price, the company has a high dividend yield of 0.1
5
Market Beating Performance
- The stock has generated a return of 30.30% in the last 1 year, much higher than market (Sri Lanka CSE All Share) returns of 11.95%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Watawala Plantations Plc should be less than 10%
- Overall Portfolio exposure to FMCG should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Watawala Plantations Plc for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Watawala Plantations Plc
30.3%
3.66
33.76%
Sri Lanka CSE All Share
11.95%
0.72
16.49%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
19.14%
EBIT Growth (5y)
19.09%
EBIT to Interest (avg)
29.93
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.01
Sales to Capital Employed (avg)
1.64
Tax Ratio
35.77%
Dividend Payout Ratio
106.64%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
74.93%
ROE (avg)
44.12%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
16.09
EV to EBIT
11.79
EV to EBITDA
10.73
EV to Capital Employed
13.78
EV to Sales
5.01
PEG Ratio
1.14
Dividend Yield
0.09%
ROCE (Latest)
116.87%
ROE (Latest)
85.17%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
ROCE(HY)
Highest at 73.62%
INVENTORY TURNOVER RATIO(HY)
Highest at 10.25 times
RAW MATERIAL COST(Y)
Fallen by 0.36% (YoY
NET PROFIT(Q)
At LKR 317.26 MM has Grown at 132.47%
-10What is not working for the Company
INTEREST(HY)
At LKR 114.47 MM has Grown at 50.27%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,275.26
DEBT-EQUITY RATIO
(HY)
Highest at 36.65 %
OPERATING PROFIT MARGIN(Q)
Lowest at 34.05 %
NET PROFIT(Q)
Lowest at LKR 317.26 MM
EPS(Q)
Lowest at LKR 0.18
Here's what is working for Watawala Plantations Plc
Inventory Turnover Ratio
Highest at 10.25 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Profit
At LKR 317.26 MM has Grown at 132.47%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (LKR MM)
Inventory Turnover Ratio
Highest at 10.25 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 0.36% (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
Depreciation
Highest at LKR 112.43 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (LKR MM)
Here's what is not working for Watawala Plantations Plc
Interest Coverage Ratio
Lowest at 1,275.26
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
At LKR 114.47 MM has Grown at 50.27%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (LKR MM)
Operating Profit Margin
Lowest at 34.05 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Net Profit
Lowest at LKR 317.26 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (LKR MM)
EPS
Lowest at LKR 0.18
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (LKR)
Debt-Equity Ratio
Highest at 36.65 %
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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