Hayleys Fabric Plc (MGT.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

Ambeon Holdings Plc

Hayleys Fabric Plc

Teejay Lanka Plc

Why is Hayleys Fabric Plc ?

With a fall in Net Sales of -11.81%, the company declared Very Negative results in Dec 25

OPERATING CASH FLOW(Y) Lowest at LKR 619.06 MM
ROCE(HY) Lowest at 8.51%
RAW MATERIAL COST(Y) Grown by 13.53% (YoY)

With ROE of 14.79%, it has a very attractive valuation with a 1.53 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 -21.60%, its profits have fallen by -28.2%
At the current price, the company has a high dividend yield of 0.9

Below par performance in long term as well as near term

Along with generating -21.60% 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 Garments & Apparels)

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

Is Hayleys Fabric Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hayleys Fabric Plc

-100.0%

-0.25

36.04%

Sri Lanka CSE All Share

41.16%

2.63

15.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.19%

EBIT Growth (5y)

26.89%

EBIT to Interest (avg)

3.71

Debt to EBITDA (avg)

2.39

Net Debt to Equity (avg)

0.76

Sales to Capital Employed (avg)

2.06

Tax Ratio

31.82%

Dividend Payout Ratio

33.70%

Pledged Shares

Institutional Holding

ROCE (avg)

17.57%

ROE (avg)

19.10%

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

1.53

EV to EBIT

7.95

EV to EBITDA

5.73

EV to Capital Employed

1.29

EV to Sales

0.66

PEG Ratio

Dividend Yield

0.94%

ROCE (Latest)

16.28%

ROE (Latest)

14.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

-26What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR 619.06 MM

ROCE(HY)

Lowest at 8.51%

RAW MATERIAL COST(Y)

Grown by 13.53% (YoY

DIVIDEND PER SHARE(HY)

Lowest at LKR 7.25

NET SALES(Q)

Lowest at LKR 8,280.44 MM

OPERATING PROFIT(Q)

Lowest at LKR 417.05 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.04 %

PRE-TAX PROFIT(Q)

Lowest at LKR 34.17 MM

NET PROFIT(Q)

Lowest at LKR 7.46 MM

EPS(Q)

Lowest at LKR 0.02

Here's what is not working for Hayleys Fabric Plc

Pre-Tax Profit

At LKR 34.17 MM has Fallen at -92.1%

over average net sales of the previous four periods of LKR 432.51 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (LKR MM)

Net Profit

At LKR 7.46 MM has Fallen at -97.51%

over average net sales of the previous four periods of LKR 299.76 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (LKR MM)

Operating Cash Flow

Lowest at LKR 619.06 MM and Fallen

In each year 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 8,280.44 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (LKR MM)

Operating Profit

Lowest at LKR 417.05 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (LKR MM)

Operating Profit Margin

Lowest at 5.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at LKR 34.17 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (LKR MM)

Net Profit

Lowest at LKR 7.46 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)

EPS

Lowest at LKR 0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (LKR)

Dividend per share

Lowest at LKR 7.25

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (LKR)

Raw Material Cost

Grown by 13.53% (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 2.68 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income