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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

John Keells Holdings Plc

Hemas Holdings Plc

Hayleys Plc

E.B. Creasy & Co. Plc

Ambeon Capital Plc

Softlogic Holdings Plc

The Colombo Fort Land & Building Co. 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 Mar 26

RAW MATERIAL COST(Y) Fallen by -12.86% (YoY)
CASH AND EQV(HY) Highest at LKR 29,894.01 MM
DEBT-EQUITY RATIO (HY) Lowest at -17.98 %

With ROE of 16.59%, it has a very attractive valuation with a 1.81 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 14.29%, its profits have risen by 19.8%
At the current price, the company has a high dividend yield of 0

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?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hemas Holdings Plc

14.29%

-2.68

23.57%

Sri Lanka CSE All Share

32.72%

1.90

17.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.00%

EBIT Growth (5y)

20.53%

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

33.50%

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

1.81

EV to EBIT

7.74

EV to EBITDA

6.53

EV to Capital Employed

1.81

EV to Sales

0.76

PEG Ratio

Dividend Yield

ROCE (Latest)

23.35%

ROE (Latest)

16.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -12.86% (YoY

CASH AND EQV(HY)

Highest at LKR 29,894.01 MM

DEBT-EQUITY RATIO (HY)

Lowest at -17.98 %

INVENTORY TURNOVER RATIO(HY)

Highest at 3.89 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.09 times

DIVIDEND PER SHARE(HY)

Highest at LKR 5.09

OPERATING PROFIT MARGIN(Q)

Highest at 13.38 %

NET PROFIT(Q)

Highest at LKR 3,029.54 MM

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR 12,008.49 MM

INTEREST(Q)

At LKR 353.28 MM has Grown at 50.22%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 74.17%

DIVIDEND PER SHARE(HY)

Lowest at LKR 5.09

Here's what is working for Hemas Holdings Plc

Operating Profit Margin

Highest at 13.38 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at LKR 3,029.54 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

Cash and Eqv

Highest at LKR 29,894.01 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -17.98 %

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 3.89 times

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 5.09 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at LKR 5.09

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (LKR)

Raw Material Cost

Fallen by -12.86% (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

Operating Cash Flow

Lowest at LKR 12,008.49 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)

Interest

At LKR 353.28 MM has Grown at 50.22%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Dividend per share

Lowest at LKR 5.09

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (LKR)

Dividend Payout Ratio

Lowest at 74.17%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)