Bank Alfalah Ltd. (BAFL) 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

Meezan Bank Ltd.

Habib Bank Ltd.

United Bank Ltd.

MCB Bank Ltd.

Faysal Bank Ltd.

Bank of Khyber

Habib Metropolitan Bank Ltd.

Bank Alfalah Ltd.

Bank Al Habib Ltd.

Soneri Bank Ltd.

Why is Bank Alfalah Ltd. ?

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 12.49% signifying inadequate buffers against its risk based assets

Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0%
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 12.49% signifying inadequate buffers against its risk based assets
A high ratio signifies bank has weaker due diligence systems when giving out loans

Positive results in Mar 25

OPERATING CASH FLOW(Y) Highest at PKR 524,776.31 MM
NII(Q) Highest at PKR 34,121.67 MM
DIVIDEND PAYOUT RATIO(Y) Highest at 55.73%

With ROE of 21.9, it has a very attractive valuation with a 0.8 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 9% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 11.6

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 Regional Banks)

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

Is Bank Alfalah Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Bank Alfalah Ltd.

-100.0%

1.05

36.54%

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)

31.10%

EBIT Growth (5y)

30.96%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

59.49%

Pledged Shares

Institutional Holding

0.39%

ROCE (avg)

ROE (avg)

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

1.05

EV to EBIT

9.78

EV to EBITDA

8.73

EV to Capital Employed

1.01

EV to Sales

1.44

PEG Ratio

0.55

Dividend Yield

8.43%

ROCE (Latest)

10.37%

ROE (Latest)

20.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

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

3What is working for the Company

NII(Q)

Highest at PKR 35,162.41 MM

CASH AND EQV(HY)

Highest at PKR 446,499.93 MM

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR -230,879.82 MM

NET PROFIT(9M)

At PKR 20,770.89 MM has Grown at -30.2%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 73.53%

NET SALES(Q)

Fallen at -27.59%

OPERATING PROFIT(Q)

Lowest at PKR -37,137.69 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -42.74 %

Here's what is working for Bank Alfalah Ltd.

NII

Highest at PKR 35,162.41 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (PKR MM)

Cash and Eqv

Highest at PKR 446,499.93 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Bank Alfalah Ltd.

Operating Cash Flow

Lowest at PKR -230,879.82 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)

Net Profit

At PKR 20,770.89 MM has Grown at -30.2%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PKR MM)

Net Sales

Fallen at -27.59%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)

Operating Profit

Lowest at PKR -37,137.69 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PKR MM)

Operating Profit Margin

Lowest at -42.74 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Dividend Payout Ratio

Lowest at 73.53%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)