Arif Habib Ltd. (AHL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

AKD Securities Ltd. (Pakistan)

First Capital Securities Corp. Ltd.

Arif Habib Ltd.

JS Global Capital Ltd.

Pakistan Stock Exchange Ltd.

First Dawood Properties Ltd.

First National Equities Ltd.

Why is Arif Habib Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 23.50%

Poor long term growth as Net Sales has grown by an annual rate of 51.00% and Operating profit at 50.55%

Positive results in Mar 25

NET PROFIT(Q) At PKR 245.91 MM has Grown at 544.74%
NET SALES(HY) At PKR 1,852.41 MM has Grown at 41.89%
PRE-TAX PROFIT(Q) At PKR 334.62 has Grown at 235.43%

With ROE of 35.9, it has a expensive valuation with a 2.8 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 0%, its profits have risen by 243% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 6.8

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Arif Habib Ltd. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

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

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

Is Arif Habib Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Arif Habib Ltd.

-100.0%

0.41

82.52%

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)

26.62%

EBIT Growth (5y)

3.77%

EBIT to Interest (avg)

32.57

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

59.88%

Dividend Payout Ratio

66.57%

Pledged Shares

Institutional Holding

ROCE (avg)

112.11%

ROE (avg)

22.58%

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

3.66

EV to EBIT

4.25

EV to EBITDA

1.56

EV to Capital Employed

-0.79

EV to Sales

0.74

PEG Ratio

Dividend Yield

13.73%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

9.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

14What is working for the Company

NET PROFIT(Q)

At PKR 245.91 MM has Grown at 544.74%

NET SALES(HY)

At PKR 1,852.41 MM has Grown at 41.89%

PRE-TAX PROFIT(Q)

At PKR 334.62 MM has Grown at 235.43%

RAW MATERIAL COST(Y)

Fallen by 1.29% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -277.22 %

DEBTORS TURNOVER RATIO(HY)

Highest at 2.56%

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR -1,704.16 MM

NET PROFIT(9M)

At PKR 755.87 MM has Grown at -36.03%

Here's what is working for Arif Habib Ltd.

Net Profit

At PKR 245.91 MM has Grown at 544.74%

over average net sales of the previous four periods of PKR 38.14 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (PKR MM)

Pre-Tax Profit

At PKR 334.62 MM has Grown at 235.43%

over average net sales of the previous four periods of PKR 99.76 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (PKR MM)

Net Sales

At PKR 1,852.41 MM has Grown at 41.89%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (PKR MM)

Debt-Equity Ratio

Lowest at -277.22 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 2.56%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 1.29% (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 Arif Habib Ltd.

Operating Cash Flow

Lowest at PKR -1,704.16 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)