Horana Plantations Plc (HOPL.N0000) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Hapugastenne Plantations Plc

Horana Plantations Plc

Why is Horana Plantations Plc ?

High Debt company with Weak Long Term Fundamental Strength

High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 9.40% signifying low profitability per unit of shareholders funds
PRE-TAX PROFIT(Q) At LKR 16.53 MM has Fallen at -64.65%
INTEREST COVERAGE RATIO(Q) Lowest at 268.64
NET PROFIT(Q) At LKR 11.68 MM has Fallen at -56.51%

Underperformed the market in the last 1 year

The stock has generated a return of 9.60% in the last 1 year, much lower than market (Sri Lanka CSE All Share) returns of 41.16%

Real-Time Research Report

Verdict Report

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 Other Agricultural Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Horana Plantations Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Horana Plantations Plc

-100.0%

0.75

44.07%

Sri Lanka CSE All Share

41.16%

2.63

15.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.46%

EBIT Growth (5y)

44.41%

EBIT to Interest (avg)

1.70

Debt to EBITDA (avg)

4.10

Net Debt to Equity (avg)

1.96

Sales to Capital Employed (avg)

1.31

Tax Ratio

40.86%

Dividend Payout Ratio

33.91%

Pledged Shares

Institutional Holding

ROCE (avg)

14.87%

ROE (avg)

9.40%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.69

EV to EBIT

9.36

EV to EBITDA

5.82

EV to Capital Employed

1.23

EV to Sales

0.92

PEG Ratio

0.13

Dividend Yield

0.47%

ROCE (Latest)

13.13%

ROE (Latest)

14.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 5.15 times

-17What is not working for the Company

PRE-TAX PROFIT(Q)

At LKR 16.53 MM has Fallen at -64.65%

INTEREST COVERAGE RATIO(Q)

Lowest at 268.64

NET PROFIT(Q)

At LKR 11.68 MM has Fallen at -56.51%

RAW MATERIAL COST(Y)

Grown by 16.42% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 13.72 times

NET SALES(Q)

Lowest at LKR 883.19 MM

EPS(Q)

Lowest at LKR 0.49

Here's what is working for Horana Plantations Plc

Inventory Turnover Ratio

Highest at 5.15 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Horana Plantations Plc

Pre-Tax Profit

At LKR 16.53 MM has Fallen at -64.65%

over average net sales of the previous four periods of LKR 46.76 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (LKR MM)

Interest Coverage Ratio

Lowest at 268.64

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At LKR 11.68 MM has Fallen at -56.51%

over average net sales of the previous four periods of LKR 26.87 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (LKR MM)

Net Sales

Lowest at LKR 883.19 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (LKR MM)

EPS

Lowest at LKR 0.49

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (LKR)

Debtors Turnover Ratio

Lowest at 13.72 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 16.42% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at LKR 0.15 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income