Tal Lanka Hotels Plc (TAJ.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

Asian Hotels & Properties Plc

Ceylon Hotels Corp. Plc

Trans Asia Hotels Plc

John Keells Hotels Plc

Aitken Spence Hotel Holdings Plc

Jetwing Symphony PLC

The Kingsbury Plc

Hunas Holdings Plc

Eden Hotel Lanka Plc

Tal Lanka Hotels Plc

Galadari Hotels (Lanka) Plc

Why is Tal Lanka Hotels Plc ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 31.15% and Operating profit at 13.93% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared negative results in Mar'2025 after 2 consecutive positive quarters

PRE-TAX PROFIT(Q) At LKR -64.02 MM has Fallen at -308.49%
NET PROFIT(Q) At LKR -64.02 MM has Fallen at -308.49%
INTEREST(Q) At LKR 110.96 MM has Grown at 36.73%

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 56.52%, its profits have fallen by -11.3%

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 Tal Lanka Hotels Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Tal Lanka Hotels Plc

62.9%

1.38

57.77%

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)

31.15%

EBIT Growth (5y)

13.93%

EBIT to Interest (avg)

-1.16

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-2.18

Sales to Capital Employed (avg)

1.47

Tax Ratio

16.27%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.13%

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

-15.19

EV to EBIT

-296.37

EV to EBITDA

35.44

EV to Capital Employed

6.05

EV to Sales

3.05

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.04%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 275.22 MM

NET PROFIT(HY)

Higher at LKR -166.05 MM

RAW MATERIAL COST(Y)

Fallen by 1.29% (YoY

NET SALES(Q)

Highest at LKR 973.56 MM

-15What is not working for the Company

PRE-TAX PROFIT(Q)

At LKR -64.02 MM has Fallen at -308.49%

NET PROFIT(Q)

At LKR -64.02 MM has Fallen at -308.49%

INTEREST(Q)

At LKR 110.96 MM has Grown at 36.73%

INVENTORY TURNOVER RATIO(HY)

Lowest at 23.9 times

Here's what is working for Tal Lanka Hotels Plc

Operating Cash Flow

Highest at LKR 275.22 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 Sales

Highest at LKR 973.56 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Raw Material Cost

Fallen by 1.29% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at LKR 84.88 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 Tal Lanka Hotels Plc

Pre-Tax Profit

At LKR -64.02 MM has Fallen at -308.49%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (LKR MM)

Net Profit

At LKR -64.02 MM has Fallen at -308.49%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (LKR MM)

Interest

At LKR 110.96 MM has Grown at 36.73%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Inventory Turnover Ratio

Lowest at 23.9 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio