Merchant Bank of Sri Lanka & Finance Plc (MBSL.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

Commercial Bank of Ceylon Plc

Seylan Bank Plc

Amana Bank Plc

DFCC Bank PLC

Pan Asia Banking Corp. Plc

SANASA Development Bank Plc

Merchant Bank of Sri Lanka & Finance Plc

HDFC Bank of Sri Lanka

Why is Merchant Bank of Sri Lanka & Finance Plc ?

With ROA of 0.50%, it has a very expensive valuation with a 1.48 Price to Book Value

Over the past year, while the stock has generated a return of 85.92%, its profits have risen by 417% ; the PEG ratio of the company is 0.1

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 Regional Banks)

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

Is Merchant Bank of Sri Lanka & Finance Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Merchant Bank of Sri Lanka & Finance Plc

-100.0%

1.95

67.33%

Sri Lanka CSE All Share

32.72%

1.90

17.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.60%

EBIT Growth (5y)

17.36%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

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

1.48

EV to EBIT

137.49

EV to EBITDA

38.25

EV to Capital Employed

1.14

EV to Sales

2.67

PEG Ratio

0.06

Dividend Yield

ROCE (Latest)

0.83%

ROE (Latest)

5.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 563.47 MM

NET SALES(Q)

Highest at LKR 2,116.15 MM

CREDIT DEPOSIT RATIO(Q)

Highest at 0%

-7What is not working for the Company

NET PROFIT(Q)

At LKR 7.88 MM has Fallen at -69.46%

Here's what is working for Merchant Bank of Sri Lanka & Finance Plc

Net Sales

Highest at LKR 2,116.15 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (LKR MM)

Credit Deposit Ratio

Highest at 0% and Grown

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

MOJO Watch

Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets

Credit Deposit Ratio (%)

Operating Cash Flow

Highest at LKR 563.47 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (LKR MM)

Depreciation

Highest at LKR 91.28 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (LKR MM)

Here's what is not working for Merchant Bank of Sri Lanka & Finance Plc

Net Profit

At LKR 7.88 MM has Fallen at -69.46%

over average net sales of the previous four periods of LKR 25.81 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (LKR MM)