ScoreWhy is Merchant Bank of Sri Lanka & Finance Plc ?
1
- PRE-TAX PROFIT(Q) At LKR 174.74 MM has Grown at 146.75%
- NET PROFIT(Q) At LKR 100.04 MM has Grown at 157.76%
- NII(Q) Highest at LKR 753.76 MM
2
With ROA of 0.55%, it has a very expensive valuation with a 2.03 Price to Book Value
- Over the past year, while the stock has generated a return of 100.00%, its profits have risen by 417% ; the PEG ratio of the company is 0.1
3
Market Beating performance in long term as well as near term
- Along with generating 100.00% returns in the last 1 year, the stock has outperformed Sri Lanka CSE All Share in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Merchant Bank of Sri Lanka & Finance Plc should be less than 10%
- Overall Portfolio exposure to Regional Banks should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
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%
1.65
56.23%
Sri Lanka CSE All Share
60.36%
3.50
17.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-0.60%
EBIT Growth (5y)
17.36%
EBIT to Interest (avg)
0
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
0
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
33
Industry P/E
Price to Book Value
2.03
EV to EBIT
140.42
EV to EBITDA
39.06
EV to Capital Employed
1.32
EV to Sales
2.73
PEG Ratio
0.08
Dividend Yield
NA
ROCE (Latest)
0.94%
ROE (Latest)
6.18%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
PRE-TAX PROFIT(Q)
At LKR 174.74 MM has Grown at 146.75%
NET PROFIT(Q)
At LKR 100.04 MM has Grown at 157.76%
NII(Q)
Highest at LKR 753.76 MM
CREDIT DEPOSIT RATIO(HY)
Highest at 113.36%
NET SALES(Q)
Highest at LKR 1,709.13 MM
-4What is not working for the Company
NET PROFIT(HY)
At LKR 44.95 MM has Grown at -58.24%
CASH AND EQV(HY)
Lowest at LKR 1,664.75 MM
Here's what is working for Merchant Bank of Sri Lanka & Finance Plc
Pre-Tax Profit
At LKR 174.74 MM has Grown at 146.75%
over average net sales of the previous four periods of LKR 70.82 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (LKR MM)
Net Profit
At LKR 100.04 MM has Grown at 157.76%
over average net sales of the previous four periods of LKR 38.81 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (LKR MM)
NII
Highest at LKR 753.76 MM
in the last five periodsMOJO Watch
The bank's income from core business is increasing
NII (LKR MM)
Net Sales
Highest at LKR 1,709.13 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Credit Deposit Ratio
Highest at 113.36%
in the last four Semi-Annual periodsMOJO Watch
Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets
Credit Deposit Ratio (%)
Here's what is not working for Merchant Bank of Sri Lanka & Finance Plc
Cash and Eqv
Lowest at LKR 1,664.75 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Non Operating Income
Highest at LKR 0.1 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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