Hemas Holdings Valuation

Is HHL.N0000 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HHL.N0000 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HHL.N0000 (LKR83.9) is trading above our estimate of fair value (LKR54.98)

Significantly Below Fair Value: HHL.N0000 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HHL.N0000?

Key metric: As HHL.N0000 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HHL.N0000. This is calculated by dividing HHL.N0000's market cap by their current earnings.
What is HHL.N0000's PE Ratio?
PE Ratio	8x
Earnings	LK₨6.25b
Market Cap	LK₨50.11b

HHL.N0000 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	4.4x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

How does HHL.N0000's PE Ratio compare to its peers?

The above table shows the PE ratio for HHL.N0000 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	11.1x
SPEN.N0000 Aitken Spence	9.4x	n/a	LK₨50.4b
RICH.N0000 Richard Pieris	20.9x	n/a	LK₨48.8b
VONE.N0000 Vallibel One	6.3x	n/a	LK₨60.9b
HAYL.N0000 Hayleys	7.7x	n/a	LK₨76.9b
HHL.N0000 Hemas Holdings	8x	17.0%	LK₨50.1b

Price-To-Earnings vs Peers: HHL.N0000 is good value based on its Price-To-Earnings Ratio (8x) compared to the peer average (11.1x).

Price to Earnings Ratio vs Industry

How does HHL.N0000's PE Ratio compare vs other companies in the Asian Industrials Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: HHL.N0000 is good value based on its Price-To-Earnings Ratio (8x) compared to the Asian Industrials industry average (13.3x).

Price to Earnings Ratio vs Fair Ratio

What is HHL.N0000's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HHL.N0000 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8x
Fair PE Ratio	8x

Price-To-Earnings vs Fair Ratio: HHL.N0000 is expensive based on its Price-To-Earnings Ratio (8x) compared to the estimated Fair Price-To-Earnings Ratio (8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HHL.N0000 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	LK₨83.90	LK₨107.43 +28.0%	8.2%	LK₨115.00	LK₨95.00	n/a	3
Nov ’25	LK₨83.30	LK₨107.43 +29.0%	8.2%	LK₨115.00	LK₨95.00	n/a	3
Oct ’25	LK₨78.70	LK₨107.43 +36.5%	8.2%	LK₨115.00	LK₨95.00	n/a	3
Sep ’25	LK₨74.50	LK₨104.63 +40.4%	10.8%	LK₨116.70	LK₨91.80	n/a	4
Aug ’25	LK₨79.60	LK₨101.17 +27.1%	10.9%	LK₨116.70	LK₨91.80	n/a	3
Jul ’25	LK₨83.00	LK₨101.17 +21.9%	10.9%	LK₨116.70	LK₨91.80	n/a	3
Jun ’25	LK₨87.00	LK₨98.97 +13.8%	8.1%	LK₨110.10	LK₨91.80	n/a	3
May ’25	LK₨88.40	LK₨97.37 +10.1%	5.9%	LK₨105.30	LK₨91.80	n/a	3
Apr ’25	LK₨80.50	LK₨104.53 +29.8%	12.8%	LK₨126.00	LK₨91.80	n/a	4
Mar ’25	LK₨75.00	LK₨109.20 +45.6%	14.5%	LK₨126.00	LK₨91.80	n/a	4
Feb ’25	LK₨69.00	LK₨111.67 +61.8%	16.9%	LK₨126.00	LK₨85.00	n/a	3
Jan ’25	LK₨66.70	LK₨111.67 +67.4%	16.9%	LK₨126.00	LK₨85.00	n/a	3
Dec ’24	LK₨71.10	LK₨111.67 +57.1%	16.9%	LK₨126.00	LK₨85.00	n/a	3
Nov ’24	LK₨71.60	LK₨111.67 +56.0%	16.9%	LK₨126.00	LK₨85.00	LK₨83.30	3
Oct ’24	LK₨79.80	LK₨105.13 +31.7%	18.9%	LK₨126.00	LK₨85.00	LK₨78.70	4
Sep ’24	LK₨82.20	LK₨102.15 +24.3%	16.6%	LK₨120.00	LK₨85.00	LK₨74.50	4
Aug ’24	LK₨76.10	LK₨102.15 +34.2%	16.6%	LK₨120.00	LK₨85.00	LK₨79.60	4
Jul ’24	LK₨69.60	LK₨92.38 +32.7%	7.9%	LK₨102.00	LK₨85.00	LK₨83.00	4
Jun ’24	LK₨64.00	LK₨92.38 +44.3%	7.9%	LK₨102.00	LK₨85.00	LK₨87.00	4
May ’24	LK₨63.40	LK₨92.38 +45.7%	7.9%	LK₨102.00	LK₨85.00	LK₨88.40	4
Apr ’24	LK₨65.00	LK₨89.17 +37.2%	6.2%	LK₨97.00	LK₨85.00	LK₨80.50	3
Mar ’24	LK₨64.20	LK₨78.50 +22.3%	6.3%	LK₨85.00	LK₨73.00	LK₨75.00	3
Feb ’24	LK₨59.40	LK₨71.83 +20.9%	7.2%	LK₨77.50	LK₨65.00	LK₨69.00	3
Jan ’24	LK₨56.40	LK₨71.83 +27.4%	7.2%	LK₨77.50	LK₨65.00	LK₨66.70	3
Dec ’23	LK₨56.00	LK₨68.87 +23.0%	9.4%	LK₨78.00	LK₨63.60	LK₨71.10	3
Nov ’23	LK₨55.10	LK₨72.65 +31.9%	11.9%	LK₨84.00	LK₨63.60	LK₨71.60	4

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.