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

Bairaha Farms Plc

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Maskeliya Plantations Plc

Kegalle Plantations PLC

Kahawatte Plantations Plc

Horana Plantations Plc

Malwatte Valley Plantations Plc

Balangoda Plantations Plc

Hapugastenne Plantations Plc

Why is Horana Plantations Plc ?

High Debt company with Weak Long Term Fundamental Strength

The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 9.40% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at LKR 362.36 MM
INTEREST COVERAGE RATIO(Q) Lowest at 252.5
PRE-TAX PROFIT(Q) At LKR 16.43 MM has Fallen at -49.9%

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, High Return

Absolute

Risk Adjusted

Volatility

Horana Plantations Plc

3.3%

0.85

50.34%

Sri Lanka CSE All Share

11.95%

0.72

16.49%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.20%

EBIT Growth (5y)

85.11%

EBIT to Interest (avg)

2.02

Debt to EBITDA (avg)

3.10

Net Debt to Equity (avg)

1.96

Sales to Capital Employed (avg)

1.31

Tax Ratio

36.48%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

16.74%

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

1.39

EV to EBIT

11.48

EV to EBITDA

6.39

EV to Capital Employed

1.13

EV to Sales

0.84

PEG Ratio

Dividend Yield

0.54%

ROCE (Latest)

9.89%

ROE (Latest)

8.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Mildly Bullish

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

4What is working for the Company

CASH AND EQV(HY)

Highest at LKR 107.84 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 5.61 times

EPS(Q)

Highest at LKR 2.08

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR 362.36 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 252.5

PRE-TAX PROFIT(Q)

At LKR 16.43 MM has Fallen at -49.9%

NET PROFIT(Q)

At LKR 10.35 MM has Fallen at -49.48%

RAW MATERIAL COST(Y)

Grown by 10.85% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 16.93 times

INTEREST(Q)

Highest at LKR 44.75 MM

Here's what is working for Horana Plantations Plc

EPS

Highest at LKR 2.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Cash and Eqv

Highest at LKR 107.84 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 5.61 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

Interest Coverage Ratio

Lowest at 252.5

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At LKR 16.43 MM has Fallen at -49.9%

over average net sales of the previous four periods of LKR 32.79 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (LKR MM)

Net Profit

At LKR 10.35 MM has Fallen at -49.48%

over average net sales of the previous four periods of LKR 20.49 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (LKR MM)

Operating Cash Flow

Lowest at LKR 362.36 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (LKR MM)

Interest

Highest at LKR 44.75 MM

in the last five periods and Increased by 5.63% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Debtors Turnover Ratio

Lowest at 16.93 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 10.85% (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