Why is Lanka Hospitals Corp. Plc ?
1
Poor long term growth as Operating profit has grown by an annual rate 25.53% of over the last 5 years
2
Flat results in Dec 24
- INTEREST(HY) At LKR 29.91 MM has Grown at 67.6%
3
With ROE of 11.03%, it has a expensive valuation with a 1.46 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 34.64%, its profits have fallen by -12.2%
- At the current price, the company has a high dividend yield of 0.1
4
Underperformed the market in the last 1 year
- The stock has generated a return of 34.64% in the last 1 year, much lower than market (Sri Lanka CSE All Share) returns of 61.92%
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 Hospital)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Lanka Hospitals Corp. Plc for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Lanka Hospitals Corp. Plc
33.96%
-0.19
30.78%
Sri Lanka CSE All Share
60.36%
3.56
17.37%
Quality key factors
Factor
Value
Sales Growth (5y)
14.93%
EBIT Growth (5y)
25.53%
EBIT to Interest (avg)
58.10
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.60
Sales to Capital Employed (avg)
0.93
Tax Ratio
24.43%
Dividend Payout Ratio
25.06%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
42.68%
ROE (avg)
15.42%
Valuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
1.46
EV to EBIT
4.38
EV to EBITDA
3.39
EV to Capital Employed
2.22
EV to Sales
0.89
PEG Ratio
NA
Dividend Yield
0.10%
ROCE (Latest)
50.59%
ROE (Latest)
11.03%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Movement
Not enough Data to analyse Financial Trend
Not enough Data to analyse Financial Trend
Here's what is working for Lanka Hospitals Corp. Plc
Operating Cash Flow
Highest at LKR 2,854.68 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (LKR MM)
Operating Profit
Highest at LKR 1,025.88 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (LKR MM)
Operating Profit Margin
Highest at 30.42 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Cash and Eqv
Highest at LKR 17,611.38 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 8.64%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 21.18%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -9.3% (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 Lanka Hospitals Corp. Plc
Interest
At LKR 29.91 MM has Grown at 67.6%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (LKR MM)






