Palm Garden Hotels Plc (PALM.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

Palm Garden Hotels Plc

Why is Palm Garden Hotels Plc ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0%

Poor long term growth as Operating profit has grown by an annual rate 13.45% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Dec 25

INTEREST(Q) At LKR 1,357.68 MM has Grown at 94.78%
RAW MATERIAL COST(Y) Grown by 12.09% (YoY)
DEBTORS TURNOVER RATIO(HY) Lowest at 0.9 times

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 -14.20%, its profits have risen by 56.6%

Below par performance in long term as well as near term

Along with generating -14.20% 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 Palm Garden Hotels Plc for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Palm Garden Hotels Plc

-100.0%

0.82

52.48%

Sri Lanka CSE All Share

41.16%

2.63

15.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

64.93%

EBIT Growth (5y)

13.45%

EBIT to Interest (avg)

-0.27

Debt to EBITDA (avg)

10.06

Net Debt to Equity (avg)

0.86

Sales to Capital Employed (avg)

0.23

Tax Ratio

10.42%

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

NA (Loss Making)

Industry P/E

Price to Book Value

1.84

EV to EBIT

-154.68

EV to EBITDA

34.12

EV to Capital Employed

1.43

EV to Sales

5.43

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.93%

ROE (Latest)

-20.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 3,451.55 MM

NET PROFIT(HY)

Higher at LKR -1,212.64 MM

CASH AND EQV(HY)

Highest at LKR 14,439.91 MM

DEBT-EQUITY RATIO (HY)

Lowest at 14.57 %

-4What is not working for the Company

INTEREST(Q)

At LKR 1,357.68 MM has Grown at 94.78%

RAW MATERIAL COST(Y)

Grown by 12.09% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.9 times

Here's what is working for Palm Garden Hotels Plc

Operating Cash Flow

Highest at LKR 3,451.55 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (LKR MM)

Net Profit

Higher at LKR -1,212.64 MM

than preceding 12 month period ended Dec 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (LKR MM)

Cash and Eqv

Highest at LKR 14,439.91 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 14.57 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Palm Garden Hotels Plc

Interest

At LKR 1,357.68 MM has Grown at 94.78%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Debtors Turnover Ratio

Lowest at 0.9 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 12.09% (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