ScoreWhy is Merchant Bank of Sri Lanka & Finance Plc ?
1
- OPERATING CASH FLOW(Y) Highest at LKR 1,008.76 MM
- NET PROFIT(HY) Higher at LKR 173.83 MM
- ROCE(HY) Highest at 0.88%
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 80.95%, its profits have risen by 417% ; the PEG ratio of the company is 0.1
3
Market Beating Performance
- The stock has generated a return of 80.95% in the last 1 year, much higher than market (Sri Lanka CSE All Share) returns of 41.16%
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
72.73%
1.62
61.80%
Sri Lanka CSE All Share
41.16%
2.63
15.67%
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
Bearish
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
OPERATING CASH FLOW(Y)
Highest at LKR 1,008.76 MM
NET PROFIT(HY)
Higher at LKR 173.83 MM
ROCE(HY)
Highest at 0.88%
NII(Q)
Highest at LKR 837.81 MM
CREDIT DEPOSIT RATIO(HY)
Highest at 116.29%
NET SALES(Q)
Highest at LKR 1,951.31 MM
-2What is not working for the Company
ROCE(HY)
Lowest at 0.88%
Here's what is working for Merchant Bank of Sri Lanka & Finance Plc
Net Profit
At LKR 173.83 MM has Grown at 313.58%
Year on Year (YoY)MOJO Watch
Net Profit trend is very positive
Net Profit (LKR MM)
NII
Highest at LKR 837.81 MM
in the last five periodsMOJO Watch
The bank's income from core business is increasing
NII (LKR MM)
Net Profit
Higher at LKR 173.83 MM
than preceding 12 month period ended Sep 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (LKR MM)
Operating Cash Flow
Highest at LKR 1,008.76 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (LKR MM)
Net Sales
Highest at LKR 1,951.31 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Credit Deposit Ratio
Highest at 116.29%
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 (%)
Depreciation
Highest at LKR 85.27 MM
in the last five periodsMOJO 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
Non Operating Income
Highest at LKR 0.35 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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