Bannu Woollen Mills Ltd. (BNWM) 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

Kohinoor Industries Ltd.

Prosperity Weaving Mills Ltd.

Kohat Textile Mills Ltd.

Sana Industries Ltd.

Cordoba Logistics & Ventures Ltd.

Bannu Woollen Mills Ltd.

Crescent Fibres Ltd.

Shams Textile Mills Ltd.

Saif Textile Mills Ltd.

Rupali Polyester Ltd.

Kohinoor Spinning Mills Ltd.

Why is Bannu Woollen Mills Ltd. ?

Poor Management Efficiency with a low ROE of 0.86%

The company has been able to generate a Return on Equity (avg) of 0.86% signifying low profitability per unit of shareholders funds

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.93 times

Poor long term growth as Net Sales has grown by an annual rate of 9.49% and Operating profit at 16.20% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.93 times
The company has been able to generate a Return on Equity (avg) of 0.86% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.49% and Operating profit at 16.20% over the last 5 years

Negative results in Mar 25

RAW MATERIAL COST(Y) Grown by 333.44% (YoY)
OPERATING PROFIT(Q) Lowest at PKR -63.21
OPERATING PROFIT MARGIN(Q) Lowest at -66.04 %

With ROE of -16.3, it has a attractive valuation with a 0.1 Price to Book Value

Over the past year, while the stock has generated a return of 0%, its profits have fallen by -8587.4%

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 Garments & Apparels)

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

Is Bannu Woollen Mills Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Bannu Woollen Mills Ltd.

83.49%

0.92

55.21%

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)

10.31%

EBIT Growth (5y)

7.45%

EBIT to Interest (avg)

1.29

Debt to EBITDA (avg)

2.93

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

0.28

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.04%

ROE (avg)

0.86%

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

0.22

EV to EBIT

15.66

EV to EBITDA

10.69

EV to Capital Employed

0.30

EV to Sales

1.07

PEG Ratio

Dividend Yield

ROCE (Latest)

1.94%

ROE (Latest)

-11.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PKR 57.61 MM

NET PROFIT(HY)

Higher at PKR -96.99 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.33%

NET SALES(Q)

At PKR 95.71 MM has Grown at 44.85%

-16What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 333.44% (YoY

OPERATING PROFIT(Q)

Lowest at PKR -63.21 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -66.04 %

PRE-TAX PROFIT(Q)

Lowest at PKR -71.9 MM

NET PROFIT(Q)

Fallen at -71.85%

EPS(Q)

Lowest at PKR -6.68

Here's what is working for Bannu Woollen Mills Ltd.

Operating Cash Flow

Highest at PKR 57.61 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PKR MM)

Net Sales

At PKR 95.71 MM has Grown at 44.85%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (PKR MM)

Debtors Turnover Ratio

Highest at 4.33%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Bannu Woollen Mills Ltd.

Pre-Tax Profit

At PKR -71.9 MM has Fallen at -66.44%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (PKR MM)

Operating Profit

Lowest at PKR -63.21 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PKR MM)

Operating Profit Margin

Lowest at -66.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at PKR -71.9 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PKR MM)

Net Profit

Fallen at -71.85%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PKR MM)

EPS

Lowest at PKR -6.68

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (PKR)

Raw Material Cost

Grown by 333.44% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales