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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bairaha Farms Plc

Namunukula Plantations PLC

Ceylon Grain Elevators Plc

Kelani Valley Plantations Plc

Kegalle Plantations PLC

Maskeliya Plantations Plc

Malwatte Valley Plantations Plc

Balangoda Plantations Plc

Kahawatte Plantations Plc

Horana Plantations Plc

Hapugastenne 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
OPERATING CASH FLOW(Y) Lowest at LKR 420.22 MM
INTEREST(Q) At LKR 37.89 MM has Grown at 14.91%
RAW MATERIAL COST(Y) Grown by 11.66% (YoY)

With ROE of 14.76%, it has a very attractive valuation with a 1.69 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 11.34%, its profits have risen by 90.2% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.5

Underperformed the market in the last 1 year

The stock has generated a return of 11.34% in the last 1 year, much lower than market (Sri Lanka CSE All Share) returns of 61.92%

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

13.21%

0.83

43.99%

Sri Lanka CSE All Share

60.36%

3.56

17.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.67%

EBIT Growth (5y)

32.71%

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

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

2What is working for the Company

ROCE(HY)

Highest at 19.09%

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR 420.22 MM

INTEREST(Q)

At LKR 37.89 MM has Grown at 14.91%

RAW MATERIAL COST(Y)

Grown by 11.66% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 18.44%

PRE-TAX PROFIT(Q)

At LKR 39.95 MM has Fallen at -32.3%

NET PROFIT(Q)

At LKR 24.88 MM has Fallen at -31.19%

EPS(Q)

Lowest at LKR 1.37

Here's what is not working for Horana Plantations Plc

Operating Cash Flow

Lowest at LKR 420.22 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (LKR MM)

Interest

At LKR 37.89 MM has Grown at 14.91%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Pre-Tax Profit

At LKR 39.95 MM has Fallen at -32.3%

over average net sales of the previous four periods of LKR 59.01 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (LKR MM)

Net Profit

At LKR 24.88 MM has Fallen at -31.19%

over average net sales of the previous four periods of LKR 36.16 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)

EPS

Lowest at LKR 1.37

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (LKR)

Debtors Turnover Ratio

Lowest at 18.44%

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 11.66% (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