Why is Lanka Hospitals Corp. Plc ?
1
High Management Efficiency with a high ROE of 15.42%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 58.10
3
Poor long term growth as Operating profit has grown by an annual rate 25.53% of over the last 5 years
4
The company has declared Positive results for the last 5 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at LKR 3,034.59 MM
- ROCE(HY) Highest at 13.91%
- RAW MATERIAL COST(Y) Fallen by -8.14% (YoY)
5
With ROE of 11.75%, it has a very attractive valuation with a 1.55 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 37.40%, its profits have risen by 19.2% ; the PEG ratio of the company is 0.7
- At the current price, the company has a high dividend yield of 0.1
How much should you hold?
- Overall Portfolio exposure to Lanka Hospitals Corp. Plc should be less than 10%
- Overall Portfolio exposure to Hospital should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hospital)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Lanka Hospitals Corp. Plc for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Lanka Hospitals Corp. Plc
37.4%
-0.14
31.56%
Sri Lanka CSE All Share
32.72%
1.90
17.20%
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
34.52%
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
1.55
EV to EBIT
4.72
EV to EBITDA
3.67
EV to Capital Employed
2.53
EV to Sales
0.98
PEG Ratio
0.68
Dividend Yield
0.10%
ROCE (Latest)
53.49%
ROE (Latest)
11.75%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at LKR 3,034.59 MM
ROCE(HY)
Highest at 13.91%
RAW MATERIAL COST(Y)
Fallen by -8.14% (YoY
NET PROFIT(9M)
Higher at LKR 1,666.8 MM
CASH AND EQV(HY)
Highest at LKR 21,896.53 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -64.1 %
DEBTORS TURNOVER RATIO(HY)
Highest at 9.94 times
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Lanka Hospitals Corp. Plc
Operating Cash Flow
Highest at LKR 3,034.59 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)
Cash and Eqv
Highest at LKR 21,896.53 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -64.1 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 9.94 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Net Profit
Higher at LKR 1,666.8 MM
than preceding 12 month period ended Mar 2026MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (LKR MM)
Raw Material Cost
Fallen by -8.14% (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






