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

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.

93.9%

2.07

52.32%

Pakistan KSE 100 Share

26.26%

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)

21.92%

EBIT Growth (5y)

34.97%

EBIT to Interest (avg)

2.80

Debt to EBITDA (avg)

1.41

Net Debt to Equity (avg)

1.43

Sales to Capital Employed (avg)

2.94

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

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

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

8What is working for the Company

ROCE(HY)

Highest at 34.99%

INTEREST COVERAGE RATIO(Q)

Highest at 364.76

DIVIDEND PAYOUT RATIO(Y)

Highest at 49.93%

RAW MATERIAL COST(Y)

Fallen by -45.7% (YoY

DIVIDEND PER SHARE(HY)

Highest at PKR 13.24

OPERATING PROFIT(Q)

Highest at PKR 3,531.65 MM

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR -6,121.07 MM

NET SALES(HY)

At PKR 43,229.16 MM has Grown at -26.72%

INTEREST(Q)

At PKR 968.22 MM has Grown at 20.62%

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.83 times

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

Interest Coverage Ratio

Highest at 364.76

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at PKR 3,531.65 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PKR MM)

Dividend per share

Highest at PKR 13.24

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (PKR)

Dividend Payout Ratio

Highest at 49.93%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -45.7% (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 PKR 523.58 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (PKR MM)

Depreciation

At PKR 523.58 MM has Grown at 144.54%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (PKR MM)

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

Operating Cash Flow

Lowest at PKR -6,121.07 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 968.22 MM has Grown at 20.62%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Net Sales

At PKR 43,229.16 MM has Grown at -26.72%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)

Inventory Turnover Ratio

Lowest at 7.83 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio