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 -9.48%
- 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 -9.48%
3
Positive results in Jun 25
- ROCE(HY) Highest at 12.55%
- RAW MATERIAL COST(Y) Fallen by -20.2% (YoY)
- NET PROFIT(9M) Higher at LKR 679.75 MM
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 88.19%, 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 88.19% in the last 1 year, much higher than market (Sri Lanka CSE All Share) returns of 60.36%
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, Low Return
Absolute
Risk Adjusted
Volatility
HNB Finance Plc
-100.0%
0.91
46.29%
Sri Lanka CSE All Share
60.36%
3.50
17.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.34%
EBIT Growth (5y)
-9.48%
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
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
ROCE(HY)
Highest at 12.55%
RAW MATERIAL COST(Y)
Fallen by -20.2% (YoY
NET PROFIT(9M)
Higher at LKR 679.75 MM
NET SALES(Q)
Highest at LKR 3,366.43 MM
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for HNB Finance Plc
Net Sales
Highest at LKR 3,366.43 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Net Profit
Higher at LKR 679.75 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (LKR MM)
Raw Material Cost
Fallen by -20.2% (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
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."
