Composite Analysis of Diversified Conglomerates and Investment Ranking - Financial ratio analysis & Market ratio analysis

Diversified Conglomerates in CSE have been classified under different fields therefore investors can't really compare each other to understand which carries the better value. I have conducted an analysis using financial ratios as well as market ratios to rank each diversified company on their merits using a rating scale of 1-10 where 1 being the best and 10 being the worse. Using this analysis I have ranked 10 diversified conglomerates listed in CSE and ranked accordingly.

The financial ratios used in this analysis are;,

a) Return on Equity (ROE) - Profit attributable to shareholders / Equity balance

b) Quick ratio - (Current assets - inventory) / Current liabilities

c) Debtor turnover days - Trade payable balance / Sales revenue x 365

d) Gearing ratio - Total interest bearing borrowings / (Total interest bearing borrowings + Equity)

e) Interest cover - Operating profit / Net finance cost

f) OCF per share - Net cash generated from operations / No of shares in issue


The market ratios used in this analysis are;

a) PE ratio - Market price / Earnings per share

b) PBV ratio - Market price / Net assets per share

c) DY - Latest dividend per share / Market price

Below is the results of the financial ratios for the 10 companies analyzed in this analysis.




Based on the rating scale of 1 - 10 here are the ratings for financial KPIs for the 10 companies.


Here is the analysis and comparison of the 10 companies based on market KPIs.


As per the final rankings Sunshine, Vallible One, LOLC & Richard Pieris are the first four companies under financial KPI rankings and Melstacorp, Vallible One, Richard Pieris & Sunshine are the first four companies under market KPI rankings. You may note that some companies ranked within the first four in both dynamics and these companies showcases great value in investors for the future.   



 

Comments

  1. Sachith MuhandiramJuly 5, 2021 at 8:29 AM

    Great post, thanks for sharing. I was just investing, when I get money, I bought shares. But after I started watching ur videos, now I wait for the right time to buy. One such example is TKYO.X.
    Thanks a lot again.

    ReplyDelete
  2. UnknownJuly 5, 2021 at 11:41 PM

    Very much great blog to use us...thank you
    Really appreciate that your kind attempt to inform retailers ..

    ReplyDelete
  3. SL Equity Guide BLOGJuly 7, 2021 at 10:14 AM

    You are welcome

    ReplyDelete
  4. UnknownJuly 22, 2021 at 11:04 PM

    Thank you very much

    ReplyDelete

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