Renuka City Hotels Plc (RENU.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

Renuka City Hotels Plc

Why is Renuka City Hotels Plc ?

With a growth in Net Profit of 865.45%, the company declared Very Positive results in Dec 25

OPERATING CASH FLOW(Y) Highest at LKR 1,132.73 MM
ROCE(HY) Highest at 10.65%
CASH AND EQV(HY) Highest at LKR 18,756.17 MM

With ROE of 5.58%, it has a attractive valuation with a 0.00 Price to Book Value

Over the past year, while the stock has generated a return of 81.55%, its profits have fallen by -28.6%

Market Beating Performance

The stock has generated a return of 81.55% in the last 1 year, much higher than market (Sri Lanka CSE All Share) returns of 41.16%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Renuka City Hotels Plc should be less than 10%
Overall Portfolio exposure to Hotels & Resorts should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hotels & Resorts)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Renuka City Hotels Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Renuka City Hotels Plc

81.55%

3.86

44.58%

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)

32.15%

EBIT Growth (5y)

11.62%

EBIT to Interest (avg)

-21.03

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.81

Sales to Capital Employed (avg)

0.02

Tax Ratio

1.43%

Dividend Payout Ratio

4.06%

Pledged Shares

Institutional Holding

ROCE (avg)

1.31%

ROE (avg)

13.30%

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

-190.07

EV to EBITDA

-163.20

EV to Capital Employed

-4.05

EV to Sales

-36.48

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

5.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

25What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 1,132.73 MM

ROCE(HY)

Highest at 10.65%

CASH AND EQV(HY)

Highest at LKR 18,756.17 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 163.78 times

PRE-TAX PROFIT(Q)

Highest at LKR 420.44 MM

NET PROFIT(Q)

Highest at LKR 415.69 MM

EPS(Q)

Highest at LKR 59.38

-3What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 132.87% (YoY

OPERATING PROFIT(Q)

Lowest at LKR -27.44 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -54.48 %

Here's what is working for Renuka City Hotels Plc

Pre-Tax Profit

At LKR 420.44 MM has Grown at 876.48%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (LKR MM)

Net Profit

At LKR 415.69 MM has Grown at 865.45%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (LKR MM)

Operating Cash Flow

Highest at LKR 1,132.73 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)

Pre-Tax Profit

Highest at LKR 420.44 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

Highest at LKR 415.69 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS

Highest at LKR 59.38

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Cash and Eqv

Highest at LKR 18,756.17 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 163.78 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Renuka City Hotels Plc

Operating Profit

Lowest at LKR -27.44 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (LKR MM)

Operating Profit Margin

Lowest at -54.48 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 132.87% (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