Biafo Industries Ltd. (BIFO) 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

Dynea Pakistan Ltd.

Archroma Pakistan Ltd.

Synthetic Products Enterprises Ltd.

Biafo Industries Ltd.

Ghani Value Glass Ltd.

Berger Paints Pakistan Ltd.

Descon Oxychem Ltd.

International Steels Ltd.

Hi-Tech Lubricants Ltd.

Nimir Resins Ltd.

Buxly Paints Ltd.

Why is Biafo Industries Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 7.82

Poor long term growth as Net Sales has grown by an annual rate of 9.57% and Operating profit at 3.68% over the last 5 years

The company has declared positive results in Mar'2025 after 3 consecutive negative quarters

INVENTORY TURNOVER RATIO(HY) Highest at 3.1%
NET SALES(Q) Highest at PKR 973.13
OPERATING PROFIT(Q) Highest at PKR 279.61

With ROE of 8.8, it has a expensive valuation with a 2.7 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 fallen by -64.3%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Biafo Industries 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 Biafo Industries Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Biafo Industries Ltd.

-100.0%

1.42

55.61%

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)

19.57%

EBIT Growth (5y)

24.24%

EBIT to Interest (avg)

7.82

Debt to EBITDA (avg)

0.36

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.77

Tax Ratio

48.22%

Dividend Payout Ratio

59.54%

Pledged Shares

Institutional Holding

ROCE (avg)

20.44%

ROE (avg)

15.87%

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

2.46

EV to EBIT

12.30

EV to EBITDA

10.94

EV to Capital Employed

2.39

EV to Sales

2.77

PEG Ratio

Dividend Yield

2.94%

ROCE (Latest)

19.42%

ROE (Latest)

11.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PKR 274.73 MM

NET SALES(HY)

At PKR 1,815.21 MM has Grown at 48.13%

RAW MATERIAL COST(Y)

Fallen by -3.95% (YoY

NET PROFIT(9M)

Higher at PKR 348.46 MM

CASH AND EQV(HY)

Highest at PKR 778.66 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.73 times

DIVIDEND PER SHARE(HY)

Highest at PKR 5.31

-3What is not working for the Company

INTEREST(HY)

At PKR 35.2 MM has Grown at 55.17%

NET SALES(Q)

At PKR 697.56 MM has Fallen at -17.16%

Here's what is working for Biafo Industries Ltd.

Net Profit

At PKR 348.46 MM has Grown at 188.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (PKR MM)

Operating Cash Flow

Highest at PKR 274.73 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PKR MM)

Cash and Eqv

Highest at PKR 778.66 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.73 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at PKR 5.31

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (PKR)

Net Profit

Higher at PKR 348.46 MM

than preceding 12 month period ended Dec 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (PKR MM)

Raw Material Cost

Fallen by -3.95% (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 Biafo Industries Ltd.

Interest

At PKR 35.2 MM has Grown at 55.17%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Net Sales

At PKR 697.56 MM has Fallen at -17.16%

over average net sales of the previous four periods of PKR 842.07 MM

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)