New Risk • Apr 13
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Sri Lankan stocks, typically moving 10% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (10% average weekly change). Market cap is less than US$10m (LK₨2.65b market cap, or US$8.41m). Minor Risk Revenue is less than US$5m (LK₨1.0b revenue, or US$3.3m). Valuation Update With 7 Day Price Move • Feb 23
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to LK₨57.60, the stock trades at a trailing P/E ratio of 21.1x. Average trailing P/E is 19x in the Hospitality industry in Sri Lanka. Total returns to shareholders of 178% over the past three years. Buy Or Sell Opportunity • Feb 16
Now 28% overvalued after recent price rise Over the last 90 days, the stock has risen 2.4% to LK₨69.40. The fair value is estimated to be LK₨54.40, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has grown by 72%. New Risk • Jan 16
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Sri Lankan stocks, typically moving 7.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (7.0% average weekly change). Revenue is less than US$5m (LK₨1.0b revenue, or US$3.2m). Market cap is less than US$100m (LK₨3.26b market cap, or US$10.5m). Buy Or Sell Opportunity • Dec 08
Now 24% overvalued Over the last 90 days, the stock has fallen 30% to LK₨59.00. The fair value is estimated to be LK₨47.52, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has grown by 72%. New Risk • Dec 01
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: LK₨3.04b (US$9.86m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (LK₨3.04b market cap, or US$9.86m). Minor Risk Revenue is less than US$5m (LK₨1.0b revenue, or US$3.3m). Valuation Update With 7 Day Price Move • Nov 24
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to LK₨63.40, the stock trades at a trailing P/E ratio of 23.2x. Average trailing P/E is 22x in the Hospitality industry in Sri Lanka. Total returns to shareholders of 206% over the past three years. Reported Earnings • Nov 14
Second quarter 2026 earnings released: LK₨0.37 loss per share (vs LK₨1.28 loss in 2Q 2025) Second quarter 2026 results: LK₨0.37 loss per share (improved from LK₨1.28 loss in 2Q 2025). Revenue: LK₨180.7m (up 7.7% from 2Q 2025). Net loss: LK₨18.3m (loss narrowed 71% from 2Q 2025). Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has only increased by 46% per year, which means it is significantly lagging earnings growth. Announcement • Aug 28
Royal Palms Beach Hotels PLC, Annual General Meeting, Sep 30, 2025 Royal Palms Beach Hotels PLC, Annual General Meeting, Sep 30, 2025, at 12:30 Sri Lanka Standard Time. Reported Earnings • Aug 14
First quarter 2026 earnings released: EPS: LK₨0.41 (vs LK₨1.09 loss in 1Q 2025) First quarter 2026 results: EPS: LK₨0.41 (up from LK₨1.09 loss in 1Q 2025). Revenue: LK₨187.9m (up 23% from 1Q 2025). Net income: LK₨20.4m (up LK₨74.7m from 1Q 2025). Profit margin: 11% (up from net loss in 1Q 2025). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 59% per year whereas the company’s share price has increased by 58% per year. Board Change • Jul 28
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 7 highly experienced directors. 2 independent directors (5 non-independent directors). Non-Executive Independent Director Prasanna Senani Rajiv Chitty was the last independent director to join the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • May 24
Full year 2025 earnings released: EPS: LK₨0.28 (vs LK₨3.38 in FY 2024) Full year 2025 results: EPS: LK₨0.28 (down from LK₨3.38 in FY 2024). Revenue: LK₨955.8m (down 13% from FY 2024). Net income: LK₨14.1m (down 92% from FY 2024). Profit margin: 1.5% (down from 16% in FY 2024). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 55% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Board Change • May 14
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 7 highly experienced directors. 2 independent directors (5 non-independent directors). Non-Executive Independent Director Prasanna Senani Rajiv Chitty was the last independent director to join the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Buy Or Sell Opportunity • Apr 25
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.3% to LK₨35.90. The fair value is estimated to be LK₨44.97, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 42% over the last 3 years. Meanwhile, the company has become profitable. Buy Or Sell Opportunity • Mar 04
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 5.5% to LK₨34.20. The fair value is estimated to be LK₨43.11, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 42% over the last 3 years. Meanwhile, the company has become profitable. Reported Earnings • Feb 15
Third quarter 2025 earnings released: LK₨0.08 loss per share (vs LK₨1.70 profit in 3Q 2024) Third quarter 2025 results: LK₨0.08 loss per share (down from LK₨1.70 profit in 3Q 2024). Revenue: LK₨254.7m (down 18% from 3Q 2024). Net loss: LK₨4.30m (down 105% from profit in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 67% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Announcement • Jan 03
Royal Palms Beach Hotels PLC Announces Change of Capacity of Ajita De Zoysa to Non-Executive Director Royal Palms Beach Hotels PLC announced that the board of directors of the company has resolved on 31 December 2024 that Mr. Ajita de Zoysa ceasing to be independent with effect from 1 January 2025 in terms of Rule 9.8.3 (v) of the Listing Rules, shall continue as a non-executive director of the company. Valuation Update With 7 Day Price Move • Dec 03
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to LK₨37.10, the stock trades at a trailing P/E ratio of 19x. Average forward P/E is 20x in the Hospitality industry in Sri Lanka. Total returns to shareholders of 49% over the past three years. Buy Or Sell Opportunity • Nov 19
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 9.0% to LK₨31.50. The fair value is estimated to be LK₨25.90, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 51% over the last 3 years. Meanwhile, the company has become profitable. Reported Earnings • Nov 14
Second quarter 2025 earnings released: LK₨1.28 loss per share (vs LK₨0.07 loss in 2Q 2024) Second quarter 2025 results: LK₨1.28 loss per share (further deteriorated from LK₨0.07 loss in 2Q 2024). Revenue: LK₨167.9m (down 13% from 2Q 2024). Net loss: LK₨64.1m (loss widened LK₨60.5m from 2Q 2024). Revenue is forecast to grow 36% p.a. on average during the next 2 years, compared to a 33% growth forecast for the Hospitality industry in Sri Lanka. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • Aug 31
Royal Palms Beach Hotels PLC, Annual General Meeting, Sep 30, 2024 Royal Palms Beach Hotels PLC, Annual General Meeting, Sep 30, 2024, at 12:30 Sri Lanka Standard Time. Location: assembled at 236, galle road, colombo 3, Sri Lanka Reported Earnings • Aug 14
First quarter 2025 earnings released: LK₨1.09 loss per share (vs LK₨0.87 loss in 1Q 2024) First quarter 2025 results: LK₨1.09 loss per share (further deteriorated from LK₨0.87 loss in 1Q 2024). Revenue: LK₨152.4m (up 3.3% from 1Q 2024). Net loss: LK₨54.3m (loss widened 25% from 1Q 2024). Revenue is forecast to grow 30% p.a. on average during the next 2 years, compared to a 30% growth forecast for the Hospitality industry in Sri Lanka. Over the last 3 years on average, earnings per share has increased by 70% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jun 27
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to LK₨32.60, the stock trades at a trailing P/E ratio of 9.6x. Average forward P/E is 20x in the Hospitality industry in Sri Lanka. Total returns to shareholders of 113% over the past three years. Reported Earnings • May 30
Full year 2024 earnings released: EPS: LK₨3.40 (vs LK₨2.14 loss in FY 2023) Full year 2024 results: EPS: LK₨3.40 (up from LK₨2.14 loss in FY 2023). Revenue: LK₨1.09b (up 63% from FY 2023). Net income: LK₨170.0m (up LK₨277.0m from FY 2023). Profit margin: 16% (up from net loss in FY 2023). The move to profitability was driven by higher revenue. Revenue is forecast to grow 26% p.a. on average during the next 2 years, compared to a 26% growth forecast for the Hospitality industry in Sri Lanka. Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to LK₨33.60, the stock trades at a trailing P/E ratio of 15.2x. Average forward P/E is 22x in the Hospitality industry in Sri Lanka. Total returns to shareholders of 130% over the past three years. Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to LK₨29.40, the stock trades at a trailing P/E ratio of 13.3x. Average forward P/E is 21x in the Hospitality industry in Sri Lanka. Total returns to shareholders of 100% over the past three years. Reported Earnings • Feb 16
Third quarter 2024 earnings released: EPS: LK₨1.70 (vs LK₨2.56 loss in 3Q 2023) Third quarter 2024 results: EPS: LK₨1.70 (up from LK₨2.56 loss in 3Q 2023). Revenue: LK₨311.4m (up 90% from 3Q 2023). Net income: LK₨84.9m (up LK₨212.8m from 3Q 2023). Profit margin: 27% (up from net loss in 3Q 2023). The move to profitability was primarily driven by higher revenue. Revenue is forecast to grow 26% p.a. on average during the next 3 years, compared to a 26% growth forecast for the Hospitality industry in Sri Lanka. Over the last 3 years on average, earnings per share has increased by 24% per year whereas the company’s share price has increased by 23% per year. Reported Earnings • Nov 16
Second quarter 2024 earnings released: LK₨0.07 loss per share (vs LK₨1.35 loss in 2Q 2023) Second quarter 2024 results: LK₨0.07 loss per share (improved from LK₨1.35 loss in 2Q 2023). Revenue: LK₨193.4m (up 165% from 2Q 2023). Net loss: LK₨3.59m (loss narrowed 95% from 2Q 2023). Revenue is forecast to grow 28% p.a. on average during the next 3 years, compared to a 27% growth forecast for the Hospitality industry in Sri Lanka. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Announcement • Sep 02
Royal Palms Beach Hotels PLC, Annual General Meeting, Sep 26, 2023 Royal Palms Beach Hotels PLC, Annual General Meeting, Sep 26, 2023, at 12:30 Sri Lanka Standard Time. Agenda: To receive and adopt the Report of the Directors and the Statements of Accounts for the year ended 31st March 2023, with the Report of the Auditors thereon; to consider directorate reelections; to re-appoint Messrs. Ernst & Young who are deemed to be re-appointed as Auditors of the Company in terms of Section 158 of the Companies Act No.7 of 2007 and to authorize the Directors to determine their remuneration; to authorize the Directors to determine payments for charitable and other purposes for year 2023/24; to consider and if thought fit passing the following resolution as a special resolution; and to consider other matters. Reported Earnings • Aug 12
First quarter 2024 earnings released: LK₨0.87 loss per share (vs LK₨0.32 profit in 1Q 2023) First quarter 2024 results: LK₨0.87 loss per share (down from LK₨0.32 profit in 1Q 2023). Revenue: LK₨147.6m (up 16% from 1Q 2023). Net loss: LK₨43.4m (down 371% from profit in 1Q 2023). Revenue is forecast to grow 29% p.a. on average during the next 2 years, compared to a 36% growth forecast for the Hospitality industry in Sri Lanka. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has increased by 29% per year, which means it is well ahead of earnings. Announcement • Jul 23
Royal Palms Beach Hotels plc Announces Demise of Merrill J Fernando, Non-Executive Director Royal Palms Beach Hotels PLC announced the demise of Mr. Merrill J Fernando, non-executive director of the company on July 20, 2023. Recent Insider Transactions • Jun 15
Insider recently bought LK₨720k worth of stock On the 9th of June, N. H. V. Perera bought around 30k shares on-market at roughly LK₨24.00 per share. This transaction amounted to 11% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Reported Earnings • Jun 03
Full year 2023 earnings released: LK₨2.15 loss per share (vs LK₨0.45 loss in FY 2022) Full year 2023 results: LK₨2.15 loss per share (further deteriorated from LK₨0.45 loss in FY 2022). Revenue: LK₨670.9m (up 99% from FY 2022). Net loss: LK₨107.5m (loss widened 382% from FY 2022). Over the last 3 years on average, earnings per share has fallen by 44% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Reported Earnings • Feb 16
Third quarter 2023 earnings released: LK₨2.36 loss per share (vs LK₨0.59 loss in 3Q 2022) Third quarter 2023 results: LK₨2.36 loss per share (further deteriorated from LK₨0.59 loss in 3Q 2022). Revenue: LK₨163.9m (up 80% from 3Q 2022). Net loss: LK₨127.9m (loss widened 334% from 3Q 2022). Over the last 3 years on average, earnings per share has fallen by 53% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Reported Earnings • Nov 20
Second quarter 2023 earnings released: LK₨1.35 loss per share (vs LK₨0.91 loss in 2Q 2022) Second quarter 2023 results: LK₨1.35 loss per share (further deteriorated from LK₨0.91 loss in 2Q 2022). Revenue: LK₨73.1m (up 172% from 2Q 2022). Net loss: LK₨67.5m (loss widened 49% from 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 10 highly experienced directors. Non-Executive Independent Director Prasanna Senani Rajiv Chitty was the last director to join the board, commencing their role in 2013. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Oct 12
Investor sentiment deteriorated over the past week After last week's 15% share price decline to LK₨21.30, the stock trades at a trailing P/E ratio of 41.4x. Average trailing P/E is 33x in the Hospitality industry in Sri Lanka. Total returns to shareholders of 15% over the past three years. Announcement • Sep 07
Royal Palms Beach Hotels PLC, Annual General Meeting, Sep 28, 2022 Royal Palms Beach Hotels PLC, Annual General Meeting, Sep 28, 2022, at 12:30 Sri Lanka Standard Time. Agenda: To receive and adopt the Report of Directors and the Statement of Accounts for the year ended 31 March 2022, with the Report of the Auditors there on; to consider directorate elections; to re-appoint Messrs. Ernst & Young who are deemed to be re-appointed as Auditors of the Company in terms of Section 158 of the Companies Act No.7 of 2007 and to authorize the Directors to determine their remuneration; and to authorize the Directors to determine payments for charitable and other purposes for the year 2022/2023. Valuation Update With 7 Day Price Move • Sep 05
Investor sentiment improved over the past week After last week's 19% share price gain to LK₨27.90, the stock trades at a trailing P/E ratio of 54.2x. Average trailing P/E is 35x in the Hospitality industry in Sri Lanka. Total returns to shareholders of 79% over the past three years. Valuation Update With 7 Day Price Move • Aug 19
Investor sentiment improved over the past week After last week's 23% share price gain to LK₨25.00, the stock trades at a trailing P/E ratio of 48.5x. Average trailing P/E is 29x in the Hospitality industry in Sri Lanka. Total returns to shareholders of 60% over the past three years. Reported Earnings • Aug 15
First quarter 2023 earnings released: EPS: LK₨0.32 (vs LK₨0.66 loss in 1Q 2022) First quarter 2023 results: EPS: LK₨0.32 (up from LK₨0.66 loss in 1Q 2022). Revenue: LK₨127.8m (up 251% from 1Q 2022). Net income: LK₨16.0m (up LK₨49.2m from 1Q 2022). Profit margin: 13% (up from net loss in 1Q 2022). The move to profitability was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 92 percentage points per year, which is a significant difference in performance. Reported Earnings • Jun 02
Full year 2022 earnings released: LK₨0.47 loss per share (vs LK₨2.58 loss in FY 2021) Full year 2022 results: LK₨0.47 loss per share (up from LK₨2.58 loss in FY 2021). Revenue: LK₨336.9m (up 123% from FY 2021). Net loss: LK₨23.4m (loss narrowed 82% from FY 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 115 percentage points per year, which is a significant difference in performance. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 10 highly experienced directors. Non-Executive Independent Director Prasanna Senani Rajiv Chitty was the last director to join the board, commencing their role in 2013. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 17
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: LK₨0.59 loss per share (vs LK₨0.59 loss in 3Q 2021). Revenue: LK₨91.0m (up 178% from 3Q 2021). Net loss: LK₨29.5m (flat on 3Q 2021). Revenue was in line with analyst estimates. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 126 percentage points per year, which is a significant difference in performance. Reported Earnings • May 30
Full year 2021 earnings released: LK₨2.60 loss per share (vs LK₨1.38 profit in FY 2020) Full year 2021 results: Net loss: LK₨129.8m (down 288% from profit in FY 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 68 percentage points per year, which is a significant difference in performance. Is New 90 Day High Low • Mar 12
New 90-day low: LK₨14.00 The company is down 32% from its price of LK₨20.50 on 11 December 2020. The Sri Lankan market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Hospitality industry, which is down 12% over the same period. Reported Earnings • Feb 13
Third quarter 2021 earnings released: LK₨0.59 loss per share (vs LK₨0.92 profit in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and control over costs. Third quarter 2021 results: Revenue: LK₨32.8m (down 83% from 3Q 2020). Net loss: LK₨29.7m (down 165% from profit in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Feb 11
Investor sentiment deteriorated over the past week After last week's 17% share price decline to LK₨14.30, the stock is trading at a trailing P/E ratio of 26x, down from the previous P/E ratio of 31.3x. This compares to an average P/E of 29x in the Hospitality industry in Sri Lanka. Total return to shareholders over the past three years is a loss of 7.7%. Valuation Update With 7 Day Price Move • Dec 04
Market bids up stock over the past week After last week's 21% share price gain to LK₨18.40, the stock is trading at a trailing P/E ratio of 21.2x, up from the previous P/E ratio of 17.5x. This compares to an average P/E of 48x in the Hospitality industry in Sri Lanka. Total returns to shareholders over the past three years are 8.8%. Is New 90 Day High Low • Dec 01
New 90-day high: LK₨16.10 The company is up 13% from its price of LK₨14.20 on 02 September 2020. The Sri Lankan market is up 17% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Hospitality industry, which is up 10.0% over the same period. Is New 90 Day High Low • Sep 24
New 90-day high: LK₨15.60 The company is up 10.0% from its price of LK₨14.20 on 24 June 2020. The Sri Lankan market is up 13% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Hospitality industry, which is up 8.0% over the same period. 
