ScoreComparison
Why is HNB Finance Plc ?
1
Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 5.65%
- Poor long term growth as Operating profit has grown by an annual rate of -5.33%
- The company has been able to generate a Return on Equity (avg) of 5.65% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Operating profit has grown by an annual rate of -5.33%
3
Positive results in Dec 25
- ROCE(HY) Highest at 19.38%
- NET SALES(Q) Highest at LKR 4,513.91 MM
- RAW MATERIAL COST(Y) Fallen by -4.06% (YoY)
4
With ROE of 10.91%, it has a expensive valuation with a 2.09 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 116.92%, its profits have risen by 41.9% ; the PEG ratio of the company is 1.1
5
Market Beating Performance
- The stock has generated a return of 116.92% in the last 1 year, much higher than market (Sri Lanka CSE All Share) returns of 41.16%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to HNB Finance Plc should be less than 10%
- Overall Portfolio exposure to Finance should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is HNB Finance Plc for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
HNB Finance Plc
-100.0%
1.37
49.38%
Sri Lanka CSE All Share
41.16%
2.63
15.67%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.61%
EBIT Growth (5y)
-5.33%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
10.14%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
73.73%
ROE (avg)
5.65%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
2.09
EV to EBIT
6.58
EV to EBITDA
5.93
EV to Capital Employed
2.36
EV to Sales
1.16
PEG Ratio
1.10
Dividend Yield
NA
ROCE (Latest)
35.85%
ROE (Latest)
10.91%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend19What is working for the Company
ROCE(HY)
Highest at 19.38%
NET SALES(Q)
Highest at LKR 4,513.91 MM
RAW MATERIAL COST(Y)
Fallen by -4.06% (YoY
PRE-TAX PROFIT(Q)
Highest at LKR 759.57 MM
NET PROFIT(Q)
Highest at LKR 531.23 MM
EPS(Q)
Highest at LKR 0.26
-1What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 105.01 %
Here's what is working for HNB Finance Plc
Net Sales
Highest at LKR 4,513.91 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (LKR MM)
Net Sales
At LKR 4,513.91 MM has Grown at 29.5%
over average net sales of the previous four periods of LKR 3,485.68 MMMOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Pre-Tax Profit
Highest at LKR 759.57 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (LKR MM)
Pre-Tax Profit
At LKR 759.57 MM has Grown at 63.71%
over average net sales of the previous four periods of LKR 463.98 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (LKR MM)
Net Profit
Highest at LKR 531.23 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (LKR MM)
Net Profit
At LKR 531.23 MM has Grown at 94.15%
over average net sales of the previous four periods of LKR 273.62 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (LKR MM)
EPS
Highest at LKR 0.26
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (LKR)
Raw Material Cost
Fallen by -4.06% (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 HNB Finance Plc
Debt-Equity Ratio
Highest at 105.01 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
