ScoreWhy is Hikkaduwa Beach Resort Ltd. ?
1
Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months
- Poor long term growth as Operating profit has grown by an annual rate 29.21% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
The company has declared Positive results for the last 5 consecutive quarters
- NET PROFIT(HY) Higher at LKR 66.42 MM
- ROCE(HY) Highest at -4.24%
- INTEREST COVERAGE RATIO(Q) Highest at 330.76
3
With ROE of -3.93%, it has a risky valuation with a 0.44 Price to Book Value
- Over the past year, while the stock has generated a return of 11.43%, its profits have risen by 61.2%
4
Underperformed the market in the last 1 year
- The stock has generated a return of 11.43% in the last 1 year, much lower than market (Sri Lanka CSE All Share) returns of 60.36%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Hikkaduwa Beach Resort Ltd. should be less than 10%
- Overall Portfolio exposure to Hotels & Resorts should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hotels & Resorts)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hikkaduwa Beach Resort Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Hikkaduwa Beach Resort Ltd.
-100.0%
-0.16
46.05%
Sri Lanka CSE All Share
60.36%
3.50
17.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
20.37%
EBIT Growth (5y)
29.21%
EBIT to Interest (avg)
0.52
Debt to EBITDA (avg)
11.69
Net Debt to Equity (avg)
0.66
Sales to Capital Employed (avg)
0.22
Tax Ratio
19.59%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.96%
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.44
EV to EBIT
7.66
EV to EBITDA
5.89
EV to Capital Employed
0.66
EV to Sales
2.60
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
8.67%
ROE (Latest)
-3.93%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
NET PROFIT(HY)
Higher at LKR 66.42 MM
ROCE(HY)
Highest at -4.24%
INTEREST COVERAGE RATIO(Q)
Highest at 330.76
RAW MATERIAL COST(Y)
Fallen by -1.06% (YoY
CASH AND EQV(HY)
Highest at LKR 622.64 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 65.97 %
NET SALES(Q)
Highest at LKR 629.14 MM
PRE-TAX PROFIT(Q)
Highest at LKR 123.66 MM
-2What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.37%
NET PROFIT(Q)
Fallen at -49.99%
Here's what is working for Hikkaduwa Beach Resort Ltd.
Pre-Tax Profit
At LKR 123.66 MM has Grown at 218,396.78%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (LKR MM)
Interest Coverage Ratio
Highest at 330.76
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at LKR 629.14 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Pre-Tax Profit
Highest at LKR 123.66 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (LKR MM)
Cash and Eqv
Highest at LKR 622.64 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 65.97 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -1.06% (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 Hikkaduwa Beach Resort Ltd.
Net Profit
Fallen at -49.99%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (LKR MM)
Debtors Turnover Ratio
Lowest at 6.37%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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