Hemas Holdings Plc (HHL.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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ambeon Capital Plc

John Keells Holdings Plc

E.B. Creasy & Co. Plc

Hemas Holdings Plc

The Colombo Fort Land & Building Co. Plc

Hayleys Plc

Why is Hemas Holdings Plc ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 6.95

Low Debt Company with Strong Long Term Fundamental Strength

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at LKR 13,983.32 MM
ROCE(HY) Highest at 18.17%
RAW MATERIAL COST(Y) Fallen by -0.97% (YoY)

With ROE of 17.59%, it has a attractive valuation with a 2.18 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 101.21%, its profits have risen by 37.9%
At the current price, the company has a high dividend yield of 0.1

Market Beating Performance

The stock has generated a return of 101.21% in the last 1 year, much higher than market (Sri Lanka CSE All Share) returns of 60.36%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Hemas Holdings Plc should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hemas Holdings Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hemas Holdings Plc

-100.0%

-0.66

87.29%

Sri Lanka CSE All Share

60.36%

3.50

17.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.75%

EBIT Growth (5y)

23.86%

EBIT to Interest (avg)

6.95

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

2.05

Tax Ratio

35.76%

Dividend Payout Ratio

33.36%

Pledged Shares

Institutional Holding

ROCE (avg)

24.07%

ROE (avg)

14.05%

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

2.18

EV to EBIT

8.23

EV to EBITDA

7.03

EV to Capital Employed

2.31

EV to Sales

0.84

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

28.02%

ROE (Latest)

17.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Bullish

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 13,983.32 MM

ROCE(HY)

Highest at 18.17%

RAW MATERIAL COST(Y)

Fallen by -0.97% (YoY

NET PROFIT(9M)

Higher at LKR 6,794.53 MM

DEBT-EQUITY RATIO (HY)

Lowest at -9.89 %

INVENTORY TURNOVER RATIO(HY)

Highest at 3.53%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.72%

EPS(Q)

Highest at LKR 2

-2What is not working for the Company

PRE-TAX PROFIT(Q)

At LKR 2,003.86 MM has Fallen at -34.71%

NET PROFIT(Q)

At LKR 1,191.89 MM has Fallen at -40.83%

Here's what is working for Hemas Holdings Plc

Operating Cash Flow

Highest at LKR 13,983.32 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (LKR MM)

EPS

Highest at LKR 2

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Debt-Equity Ratio

Lowest at -9.89 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 3.53%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 4.72%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.97% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Hemas Holdings Plc

Pre-Tax Profit

At LKR 2,003.86 MM has Fallen at -34.71%

over average net sales of the previous four periods of LKR 3,069.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (LKR MM)

Net Profit

At LKR 1,191.89 MM has Fallen at -40.83%

over average net sales of the previous four periods of LKR 2,014.24 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)