Hatton Plantations PLC (HPL-N-0000) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hatton Plantations PLC

Why is Hatton Plantations PLC ?

Flat results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 321.08
PRE-TAX PROFIT(Q) At LKR 101.43 MM has Fallen at -59.16%
OPERATING CASH FLOW(Y) Lowest at LKR 527.66 MM

With ROE of 9.33%, it has a very attractive valuation with a 0.00 Price to Book Value

Over the past year, while the stock has generated a return of -15.05%, its profits have fallen by -56.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -15.05% returns in the last 1 year, the stock has also underperformed Sri Lanka CSE All Share in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hatton 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 Hatton Plantations PLC for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hatton Plantations PLC

-15.33%

0.04

38.52%

Sri Lanka CSE All Share

60.36%

3.56

17.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.83%

EBIT Growth (5y)

38.26%

EBIT to Interest (avg)

5.88

Debt to EBITDA (avg)

0.14

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

1.48

Tax Ratio

31.23%

Dividend Payout Ratio

33.02%

Pledged Shares

Institutional Holding

ROCE (avg)

22.70%

ROE (avg)

23.37%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

EV to EBIT

-1.45

EV to EBITDA

-1.06

EV to Capital Employed

-0.19

EV to Sales

-0.11

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

9.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

2What is working for the Company

CASH AND EQV(HY)

Highest at LKR 3,169.05 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 19.72%

-25What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 321.08

PRE-TAX PROFIT(Q)

At LKR 101.43 MM has Fallen at -59.16%

OPERATING CASH FLOW(Y)

Lowest at LKR 527.66 MM

ROCE(HY)

Lowest at 10.29%

NET PROFIT(Q)

At LKR 82.81 MM has Fallen at -50.97%

RAW MATERIAL COST(Y)

Grown by 66.77% (YoY

NET SALES(Q)

Lowest at LKR 1,686.77 MM

INTEREST(Q)

Highest at LKR 42.07 MM

EPS(Q)

Lowest at LKR 0.35

Here's what is working for Hatton Plantations PLC

Cash and Eqv

Highest at LKR 3,169.05 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 19.72%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at LKR 54.96 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (LKR MM)

Here's what is not working for Hatton Plantations PLC

Interest Coverage Ratio

Lowest at 321.08 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At LKR 101.43 MM has Fallen at -59.16%

over average net sales of the previous four periods of LKR 248.34 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (LKR MM)

Net Profit

At LKR 82.81 MM has Fallen at -50.97%

over average net sales of the previous four periods of LKR 168.89 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (LKR MM)

Operating Cash Flow

Lowest at LKR 527.66 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

Lowest at LKR 1,686.77 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (LKR MM)

Interest

Highest at LKR 42.07 MM

in the last five periods and Increased by 7.55% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

EPS

Lowest at LKR 0.35

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (LKR)

Raw Material Cost

Grown by 66.77% (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

Non Operating Income

Highest at LKR 0.62 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income