Mahaweli Reach Hotels Plc (MRH.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

Mahaweli Reach Hotels Plc

Why is Mahaweli Reach Hotels Plc ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 22.89% and Operating profit at -7.32% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -41.71

Flat results in Jun 25

RAW MATERIAL COST(Y) Grown by 52.16% (YoY)
NET SALES(Q) Lowest at LKR 176.05 MM
INTEREST(Q) Highest at LKR 28.31 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -5.24%, its profits have risen by 18.6%

Below par performance in long term as well as near term

Along with generating -5.24% returns in the last 1 year, the stock has also underperformed Sri Lanka CSE All Share in the last 3 years, 1 year and 3 months

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 Hotels & Resorts)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Mahaweli Reach Hotels Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mahaweli Reach Hotels Plc

-9.55%

0.78

45.31%

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)

22.89%

EBIT Growth (5y)

-7.32%

EBIT to Interest (avg)

-41.71

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.50

Sales to Capital Employed (avg)

0.37

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

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

-4.02

EV to EBITDA

-35.06

EV to Capital Employed

0.35

EV to Sales

0.92

PEG Ratio

Dividend Yield

ROCE (Latest)

-8.73%

ROE (Latest)

-17.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR -59.07 MM

NET PROFIT(HY)

Higher at LKR -135.41 MM

ROCE(HY)

Highest at -15.83%

CASH AND EQV(HY)

Highest at LKR 258.81 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 30.49%

-8What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 52.16% (YoY

NET SALES(Q)

Lowest at LKR 176.05 MM

INTEREST(Q)

Highest at LKR 28.31 MM

PRE-TAX PROFIT(Q)

Lowest at LKR -103.14 MM

NET PROFIT(Q)

Lowest at LKR -103.14 MM

EPS(Q)

Lowest at LKR -2.19

Here's what is working for Mahaweli Reach Hotels Plc

Operating Cash Flow

Highest at LKR -59.07 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (LKR MM)

Cash and Eqv

Highest at LKR 258.81 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 30.49%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Mahaweli Reach Hotels Plc

Interest

At LKR 28.31 MM has Grown at 52.72%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Net Sales

Lowest at LKR 176.05 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (LKR MM)

Interest

Highest at LKR 28.31 MM

in the last five periods and Increased by 52.72% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Pre-Tax Profit

Lowest at LKR -103.14 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (LKR MM)

Net Profit

Lowest at LKR -103.14 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)

EPS

Lowest at LKR -2.19

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (LKR)

Raw Material Cost

Grown by 52.16% (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