Galadari Hotels (Lanka) Plc (GHLL.N0000) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Trans Asia Hotels Plc

Aitken Spence Plc

John Keells Hotels Plc

Asian Hotels & Properties Plc

Aitken Spence Hotel Holdings Plc

Jetwing Symphony PLC

Ceylon Hotels Corp. Plc

Hunas Holdings Plc

The Kingsbury Plc

Eden Hotel Lanka Plc

Galadari Hotels (Lanka) Plc

Why is Galadari Hotels (Lanka) Plc ?

The company has declared negative results for the last 8 consecutive quarters

INTEREST(9M) At LKR 487.49 MM has Grown at inf%
PRE-TAX PROFIT(Q) At LKR -348.09 MM has Fallen at -311.14%
OPERATING CASH FLOW(Y) Lowest at LKR -2,517.72 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -14.52%, its profits have fallen by -341.9%

Below par performance in long term as well as near term

Along with generating -14.52% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Galadari Hotels (Lanka) Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Galadari Hotels (Lanka) Plc

-13.11%

-0.02

35.97%

Sri Lanka CSE All Share

11.95%

0.72

16.49%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.18%

EBIT Growth (5y)

-10.28%

EBIT to Interest (avg)

-76.13

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

0.11

Tax Ratio

26.72%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.20%

ROE (avg)

0.34%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.39

EV to EBIT

-33.65

EV to EBITDA

-53.60

EV to Capital Employed

1.18

EV to Sales

48.11

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.51%

ROE (Latest)

-14.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

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

-40What is not working for the Company

INTEREST(9M)

At LKR 487.49 MM has Grown at inf%

PRE-TAX PROFIT(Q)

At LKR -348.09 MM has Fallen at -311.14%

OPERATING CASH FLOW(Y)

Lowest at LKR -2,517.72 MM

ROCE(HY)

Lowest at -13.44%

DEBT-EQUITY RATIO (HY)

Highest at 113.44 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.31 times

RAW MATERIAL COST(Y)

Grown by 128.49% (YoY

CASH AND EQV(HY)

Lowest at LKR 2,376.4 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.24 times

NET SALES(Q)

Fallen at -36.78%

NET PROFIT(Q)

Lowest at LKR -348.09 MM

EPS(Q)

Lowest at LKR -0.69

Here's what is not working for Galadari Hotels (Lanka) Plc

Interest

At LKR 487.49 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Pre-Tax Profit

At LKR -348.09 MM has Fallen at -311.14%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (LKR MM)

Net Profit

At LKR -348.09 MM has Fallen at -311.14%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (LKR MM)

Debt-Equity Ratio

Highest at 113.44 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 0.31 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow

Lowest at LKR -2,517.72 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (LKR MM)

Net Sales

Fallen at -36.78%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (LKR MM)

Net Profit

Lowest at LKR -348.09 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)

EPS

Lowest at LKR -0.69

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (LKR)

Cash and Eqv

Lowest at LKR 2,376.4 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 0.24 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 128.49% (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