Kandy Hotels Co. (1938) Plc (KHC.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

Nuwara Eliya Hotels Co. Plc

Kandy Hotels Co. (1938) Plc

Ceylon Hotels Corp. Plc

Aitken Spence Plc

John Keells Hotels Plc

Trans Asia Hotels Plc

Aitken Spence Hotel Holdings Plc

Eden Hotel Lanka Plc

Asian Hotels & Properties Plc

Citrus Leisure Plc

Galadari Hotels (Lanka) Plc

Why is Kandy Hotels Co. (1938) Plc ?

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at LKR 348.86 MM
ROCE(HY) Highest at 1.35%
DEBTORS TURNOVER RATIO(HY) Highest at 4.03%

With ROE of 1.40%, it has a expensive valuation with a 0.00 Price to Book Value

Over the past year, while the stock has generated a return of 26.72%, its profits have risen by 166.1%

Underperformed the market in the last 1 year

The stock has generated a return of 26.72% 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 hold?

Overall Portfolio exposure to Kandy Hotels Co. (1938) Plc should be less than 10%
Overall Portfolio exposure to Hotels & Resorts should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hotels & Resorts)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Kandy Hotels Co. (1938) Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Kandy Hotels Co. (1938) Plc

25.76%

1.79

58.58%

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)

46.67%

EBIT Growth (5y)

76.38%

EBIT to Interest (avg)

-0.42

Debt to EBITDA (avg)

28.01

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.11

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.23%

ROE (avg)

0.27%

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

EV to EBIT

1.86

EV to EBITDA

0.86

EV to Capital Employed

0.03

EV to Sales

0.16

PEG Ratio

Dividend Yield

ROCE (Latest)

1.36%

ROE (Latest)

1.40%

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

No Trend

Mildly Bearish

OBV

No Trend

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

29What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 348.86 MM

ROCE(HY)

Highest at 1.35%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.03%

RAW MATERIAL COST(Y)

Fallen by -3.53% (YoY

NET SALES(Q)

Highest at LKR 573.75 MM

OPERATING PROFIT(Q)

Highest at LKR 196.5 MM

OPERATING PROFIT MARGIN(Q)

Highest at 34.25 %

PRE-TAX PROFIT(Q)

Highest at LKR 187.4 MM

NET PROFIT(Q)

Highest at LKR 146.86 MM

EPS(Q)

Highest at LKR 0.19

-1What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.96%

Here's what is working for Kandy Hotels Co. (1938) Plc

Net Profit

At LKR 146.86 MM has Grown at 797.5%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (LKR MM)

Operating Cash Flow

Highest at LKR 348.86 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (LKR MM)

Pre-Tax Profit

At LKR 187.4 MM has Grown at 197.84%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (LKR MM)

Debtors Turnover Ratio

Highest at 4.03% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

Highest at LKR 573.75 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Operating Profit

Highest at LKR 196.5 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (LKR MM)

Operating Profit Margin

Highest at 34.25 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at LKR 187.4 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

Highest at LKR 146.86 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS

Highest at LKR 0.19

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Raw Material Cost

Fallen by -3.53% (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 Kandy Hotels Co. (1938) Plc

Inventory Turnover Ratio

Lowest at 2.96%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio