Aisha Steel Mills Ltd. (ASL) 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

Mughal Iron & Steel Industries Ltd.

International Industries Ltd.

Crescent Steel & Allied Products Ltd.

Aisha Steel Mills Ltd.

Siddiqsons Tin Plate Ltd.

Ittefaq Iron Industries Ltd.

Agha Steel Industries Ltd.

Amreli Steel Ltd.

Dost Steel Ltd.

Why is Aisha Steel Mills Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate -63.83% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 0 times
The company has been able to generate a Return on Equity (avg) of 10.29% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(HY) At PKR -542.06 MM has Grown at -388.31%
NET SALES(9M) At PKR 21,792.81 MM has Grown at -30.68%
ROCE(HY) Lowest at -15.66%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 0%, its profits have fallen by -105.7%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Aisha Steel Mills Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Aisha Steel Mills Ltd.

32.03%

1.15

50.44%

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)

1.92%

EBIT Growth (5y)

-17.35%

EBIT to Interest (avg)

1.77

Debt to EBITDA (avg)

7.56

Net Debt to Equity (avg)

2.36

Sales to Capital Employed (avg)

1.04

Tax Ratio

36.38%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

14.55%

ROE (avg)

10.29%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.27

EV to EBIT

70.31

EV to EBITDA

25.75

EV to Capital Employed

1.08

EV to Sales

1.15

PEG Ratio

Dividend Yield

ROCE (Latest)

1.53%

ROE (Latest)

-13.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

16What is working for the Company

ROCE(HY)

Highest at -4.01%

RAW MATERIAL COST(Y)

Fallen by -1,489.09% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 8.14 %

PRE-TAX PROFIT(Q)

At PKR 6.3 MM has Grown at 101.47%

NET PROFIT(Q)

At PKR 82.04 MM has Grown at 124.27%

-2What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 285.86 %

Here's what is working for Aisha Steel Mills Ltd.

Operating Profit Margin

Highest at 8.14 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At PKR 6.3 MM has Grown at 101.47%

over average net sales of the previous four periods of PKR -430.04 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Net Profit

At PKR 82.04 MM has Grown at 124.27%

over average net sales of the previous four periods of PKR -337.96 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

Raw Material Cost

Fallen by -1,489.09% (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 251.99 MM

in the last five periods

MOJO Watch

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

Depreciation (PKR MM)

Here's what is not working for Aisha Steel Mills Ltd.

Debt-Equity Ratio

Highest at 285.86 % and Grown

In each half year 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