Berger Paints Pakistan Ltd. (BERG) 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

Archroma Pakistan Ltd.

Biafo Industries Ltd.

Ghani Value Glass Ltd.

Berger Paints Pakistan Ltd.

International Steels Ltd.

Hi-Tech Lubricants Ltd.

Buxly Paints Ltd.

Why is Berger Paints Pakistan Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at 0 times

Poor long term growth as Net Sales has grown by an annual rate of 12.35% 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 8.13% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 12.35% over the last 5 years

Flat results in Mar 25

DEBTORS TURNOVER RATIO(HY) Lowest at 3.19%

With ROE of 8.3, it has a expensive valuation with a 0.7 Price to Book Value

The stock is trading at a fair value 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 4.8% ; the PEG ratio of the company is 1.9
At the current price, the company has a high dividend yield of 3.7

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Berger Paints Pakistan Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

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

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

Is Berger Paints Pakistan Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Berger Paints Pakistan Ltd.

-100.0%

0.89

50.27%

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)

14.84%

EBIT Growth (5y)

17.94%

EBIT to Interest (avg)

2.48

Debt to EBITDA (avg)

2.33

Net Debt to Equity (avg)

0.22

Sales to Capital Employed (avg)

1.84

Tax Ratio

37.76%

Dividend Payout Ratio

41.29%

Pledged Shares

Institutional Holding

ROCE (avg)

13.17%

ROE (avg)

8.13%

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

0.76

EV to EBIT

6.02

EV to EBITDA

4.61

EV to Capital Employed

0.82

EV to Sales

0.45

PEG Ratio

0.69

Dividend Yield

3.58%

ROCE (Latest)

13.63%

ROE (Latest)

8.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

9What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 478.43

RAW MATERIAL COST(Y)

Fallen by -21.77% (YoY

CASH AND EQV(HY)

Highest at PKR 976.81 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 4.63 times

NET SALES(Q)

Highest at PKR 2,576.36 MM

PRE-TAX PROFIT(Q)

Highest at PKR 174.66 MM

NET PROFIT(Q)

Highest at PKR 105.19 MM

EPS(Q)

Highest at PKR 4.28

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR 143.71 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.84 times

OPERATING PROFIT MARGIN(Q)

Lowest at 7.95 %

Here's what is working for Berger Paints Pakistan Ltd.

Interest Coverage Ratio

Highest at 478.43

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at PKR 2,576.36 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (PKR MM)

Pre-Tax Profit

Highest at PKR 174.66 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Net Profit

Highest at PKR 105.19 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

EPS

Highest at PKR 4.28

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PKR)

Cash and Eqv

Highest at PKR 976.81 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 4.63 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -21.77% (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 Berger Paints Pakistan Ltd.

Operating Cash Flow

Lowest at PKR 143.71 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)

Debtors Turnover Ratio

Lowest at 2.84 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit Margin

Lowest at 7.95 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales