Trans Asia Hotels Plc (TRAN.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

Trans Asia Hotels Plc

John Keells Hotels Plc

Asian Hotels & Properties Plc

Aitken Spence Plc

Ceylon Hotels Corp. Plc

Aitken Spence Hotel Holdings Plc

The Kingsbury Plc

Jetwing Symphony PLC

Eden Hotel Lanka Plc

Hunas Holdings Plc

Galadari Hotels (Lanka) Plc

Why is Trans Asia Hotels Plc ?

With a growth in Operating Profit of 47.55%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 7 consecutive quarters
ROCE(HY) Highest at 6.92%
INVENTORY TURNOVER RATIO(HY) Highest at 24.19 times
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost

With ROE of 3.87%, it has a very attractive valuation with a 1.41 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 24.13%, its profits have risen by 161.8% ; the PEG ratio of the company is 0.2

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Trans Asia 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 Trans Asia Hotels Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Trans Asia Hotels Plc

24.13%

0.64

38.83%

Sri Lanka CSE All Share

32.72%

1.90

17.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

32.77%

EBIT Growth (5y)

34.31%

EBIT to Interest (avg)

-2.50

Debt to EBITDA (avg)

1.38

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

0.59

Tax Ratio

30.01%

Dividend Payout Ratio

43.49%

Pledged Shares

Institutional Holding

ROCE (avg)

6.30%

ROE (avg)

0.85%

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

1.41

EV to EBIT

12.55

EV to EBITDA

8.13

EV to Capital Employed

1.39

EV to Sales

2.29

PEG Ratio

0.22

Dividend Yield

ROCE (Latest)

11.05%

ROE (Latest)

3.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Bearish

OBV

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

20What is working for the Company

ROCE(HY)

Highest at 6.92%

INVENTORY TURNOVER RATIO(HY)

Highest at 24.19 times

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

DIVIDEND PAYOUT RATIO(Y)

Highest at 126.36%

RAW MATERIAL COST(Y)

Fallen by 0.68% (YoY

CASH AND EQV(HY)

Highest at LKR 461.46 MM

DEBT-EQUITY RATIO (HY)

Lowest at 6.49 %

DEBTORS TURNOVER RATIO(HY)

Highest at 17.06 times

DIVIDEND PER SHARE(HY)

Highest at LKR 17.06

PRE-TAX PROFIT(Q)

Highest at LKR 232.08 MM

NET PROFIT(Q)

Highest at LKR 158.28 MM

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Trans Asia Hotels Plc

Pre-Tax Profit

At LKR 232.08 MM has Grown at 136.26%

over average net sales of the previous four periods of LKR 98.23 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (LKR MM)

Inventory Turnover Ratio

Highest at 24.19 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Pre-Tax Profit

Highest at LKR 232.08 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 158.28 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

Net Profit

At LKR 158.28 MM has Grown at 119.57%

over average net sales of the previous four periods of LKR 72.09 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

Cash and Eqv

Highest at LKR 461.46 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 6.49 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 17.06 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at LKR 17.06

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (LKR)

Dividend Payout Ratio

Highest at 126.36%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.68% (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