Serendib Hotels Plc Faces Valuation Adjustment Amid Mixed Financial Performance

Serendib Hotels Plc, a small-cap player in the Hotels & Resorts industry, has recently undergone an adjustment in its evaluation. The stock's valuation grade has been revised from attractive to fair, reflecting shifts in key financial metrics. Notably, the company's P/E ratio stands at 0.0, indicating a unique position within its sector.
In terms of enterprise value metrics, the EV to EBIT is reported at -1.18, while the EV to EBITDA is at -0.83. Additionally, the EV to Capital Employed and EV to Sales ratios are noted at -0.14 and -0.22, respectively. The return on capital employed (ROCE) is currently negative, which may raise questions about the efficiency of capital utilization. However, the return on equity (ROE) is recorded at 11.64%, suggesting some level of profitability.

Despite a positive financial performance in the quarter ending March 2025, Serendib Hotels Plc has underperformed the market over the past year, generating a return of 52.15%, which is significantly lower than the Sri Lanka CSE All Share's return of 83.97%.

For more insights, you can Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.