ScoreWhy is HNB Assurance Plc ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 17.07%
2
Healthy long term growth as Net Sales has grown by an annual rate of 19.20%
3
Positive results in Jun 25
- OPERATING CASH FLOW(Y) Highest at LKR 11,839.2 MM
- RAW MATERIAL COST(Y) Fallen by 0% (YoY)
4
With ROE of 14.74%, it has a attractive valuation with a 1.36 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 42.05%, its profits have risen by 7% ; the PEG ratio of the company is 1.2
5
Underperformed the market in the last 1 year
- The stock has generated a return of 42.05% in the last 1 year, much lower than market (Sri Lanka CSE All Share) returns of 61.92%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to HNB Assurance Plc should be less than 10%
- Overall Portfolio exposure to Insurance should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Insurance)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is HNB Assurance Plc for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
HNB Assurance Plc
42.45%
2.33
32.77%
Sri Lanka CSE All Share
60.36%
3.56
17.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
19.20%
EBIT Growth (5y)
0
EBIT to Interest (avg)
0.43
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
30.08%
Dividend Payout Ratio
30.84%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.36%
ROE (avg)
17.07%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
1.36
EV to EBIT
NA
EV to EBITDA
39.65
EV to Capital Employed
1.39
EV to Sales
0.62
PEG Ratio
1.23
Dividend Yield
NA
ROCE (Latest)
ROE (Latest)
14.74%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
OPERATING CASH FLOW(Y)
Highest at LKR 11,839.2 MM
RAW MATERIAL COST(Y)
Fallen by 0% (YoY
-10What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 147.8
INTEREST(Q)
Highest at LKR 79.26 MM
OPERATING PROFIT(Q)
Lowest at LKR 385.4 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 5.24 %
PRE-TAX PROFIT(Q)
Lowest at LKR 306.14 MM
NET PROFIT(Q)
Lowest at LKR 218.37 MM
EPS(Q)
Lowest at LKR 1.46
Here's what is working for HNB Assurance Plc
Operating Cash Flow
Highest at LKR 11,839.2 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (LKR MM)
Raw Material Cost
Fallen by 0% (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
Depreciation
Highest at LKR 117.15 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (LKR MM)
Here's what is not working for HNB Assurance Plc
Interest
At LKR 79.26 MM has Grown at 192.62%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (LKR MM)
Interest Coverage Ratio
Lowest at 147.8
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at LKR 79.26 MM
in the last five periods and Increased by 192.62% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (LKR MM)
Operating Profit
Lowest at LKR 385.4 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (LKR MM)
Operating Profit Margin
Lowest at 5.24 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at LKR 306.14 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (LKR MM)
Net Profit
Lowest at LKR 218.37 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (LKR MM)
EPS
Lowest at LKR 1.46
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (LKR)
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