Why is Highway Holdings Ltd. ?
1
Poor Management Efficiency with a low ROE of 1.36%
- The company has been able to generate a Return on Equity (avg) of 1.36% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of -10.02% and Operating profit at -178.07% over the last 5 years
3
The company has declared negative results in Dec'2024 after 2 consecutive positive quarters
- PRE-TAX PROFIT(Q) At USD -0 MM has Fallen at -104.3%
- NET PROFIT(Q) At USD 0.06 MM has Fallen at -37.76%
- CASH AND EQV(HY) Lowest at USD 11.79 MM
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -41.19% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
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 Miscellaneous)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Highway Holdings Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Highway Holdings Ltd.
-36.73%
-1.28
36.74%
S&P 500
13.22%
0.61
20.17%
Quality key factors
Factor
Value
Sales Growth (5y)
-10.02%
EBIT Growth (5y)
-178.07%
EBIT to Interest (avg)
-0.37
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.85
Sales to Capital Employed (avg)
1.00
Tax Ratio
3.80%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.64%
ROE (avg)
1.36%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
1.19
EV to EBIT
-3.10
EV to EBITDA
-3.10
EV to Capital Employed
1.63
EV to Sales
0.42
PEG Ratio
0.07
Dividend Yield
401.36%
ROCE (Latest)
-31.95%
ROE (Latest)
1.58%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
5What is working for the Company
ROCE(HY)
Highest at 1.07%
DEBT-EQUITY RATIO
(HY)
Lowest at -81.05 %
INVENTORY TURNOVER RATIO(HY)
Highest at 3.81 times
DEBTORS TURNOVER RATIO(HY)
Highest at 5.25 times
-11What is not working for the Company
PRE-TAX PROFIT(Q)
At USD -0 MM has Fallen at -104.3%
NET PROFIT(Q)
At USD 0.06 MM has Fallen at -37.76%
CASH AND EQV(HY)
Lowest at USD 11.79 MM
NET SALES(Q)
Fallen at -17.67%
Here's what is working for Highway Holdings Ltd.
Debt-Equity Ratio
Lowest at -81.05 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 3.81 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 5.25 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Highway Holdings Ltd.
Pre-Tax Profit
At USD -0 MM has Fallen at -104.3%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 0.06 MM has Fallen at -37.76%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Net Sales
Fallen at -17.67%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Cash and Eqv
Lowest at USD 11.79 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents






