Air Link Communication Ltd. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Air Link Communication Ltd.

Why is Air Link Communication Ltd. ?

High Management Efficiency with a high ROCE of 23.60%

Weak Long Term Fundamental Strength with a 40.56% CAGR growth in Operating Profits over the last 5 years

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 23.60%

Negative results in Mar 25

OPERATING CASH FLOW(Y) Lowest at PKR -7,881.19 MM
INTEREST COVERAGE RATIO(Q) Lowest at 173.48
DEBT-EQUITY RATIO (HY) Highest at 145.01 %

With ROE of 28.7, it has a attractive valuation with a 4 Price to Book Value

Over the past year, while the stock has generated a return of 0%, its profits have risen by 42.8% ; the PEG ratio of the company is 0.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Air Link Communication Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Air Link Communication Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Air Link Communication Ltd.

-100.0%

2.07

52.32%

Pakistan KSE 100 Share

60.28%

2.81

22.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

38.88%

EBIT Growth (5y)

48.24%

EBIT to Interest (avg)

2.80

Debt to EBITDA (avg)

1.41

Net Debt to Equity (avg)

1.43

Sales to Capital Employed (avg)

2.92

Tax Ratio

17.54%

Dividend Payout Ratio

58.28%

Pledged Shares

Institutional Holding

ROCE (avg)

23.95%

ROE (avg)

18.40%

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

3.48

EV to EBIT

8.88

EV to EBITDA

8.40

EV to Capital Employed

2.02

EV to Sales

0.81

PEG Ratio

4.77

Dividend Yield

ROCE (Latest)

22.72%

ROE (Latest)

27.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.98% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 8.76 %

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR -7,881.19 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 173.48

DEBT-EQUITY RATIO (HY)

Highest at 145.01 %

INTEREST(Q)

Highest at PKR 1,426.6 MM

PRE-TAX PROFIT(Q)

Lowest at PKR 878.79 MM

NET PROFIT(Q)

Lowest at PKR 535.3 MM

EPS(Q)

Lowest at PKR 1.35

Here's what is working for Air Link Communication Ltd.

Operating Profit Margin

Highest at 8.76 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -5.98% (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

Here's what is not working for Air Link Communication Ltd.

Operating Cash Flow

Lowest at PKR -7,881.19 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)

Interest

At PKR 1,426.6 MM has Grown at 38.01%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Interest Coverage Ratio

Lowest at 173.48

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at PKR 1,426.6 MM

in the last five periods and Increased by 38.01% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Pre-Tax Profit

Lowest at PKR 878.79 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PKR MM)

Pre-Tax Profit

Fallen at -52.49%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PKR MM)

Net Profit

Lowest at PKR 535.3 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PKR MM)

EPS

Lowest at PKR 1.35

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (PKR)

Debt-Equity Ratio

Highest at 145.01 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio