Bolan Castings Ltd. (BCL) 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

Baluchistan Wheels Ltd.

Agriauto Industries Ltd.

Thal Ltd.

Loads Ltd.

Bolan Castings Ltd.

Exide Pakistan Ltd.

Why is Bolan Castings 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 10.21% and Operating profit at 17.75% 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 16.56% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 3 consecutive quarters

NET SALES(HY) At PKR 1,063.11 MM has Grown at -45.74%
NET PROFIT(HY) At PKR 18.53 MM has Grown at -89.23%
OPERATING CASH FLOW(Y) Lowest at PKR 25.03 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 0%, its profits have fallen by -138.4%

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 Auto Components & Equipments)

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

Is Bolan Castings Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Bolan Castings Ltd.

-33.86%

-0.50

60.54%

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)

0.19%

EBIT Growth (5y)

16.84%

EBIT to Interest (avg)

1.89

Debt to EBITDA (avg)

3.84

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

4.74

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

22.31%

ROE (avg)

16.56%

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

3.30

EV to EBIT

50.55

EV to EBITDA

28.71

EV to Capital Employed

2.71

EV to Sales

0.68

PEG Ratio

Dividend Yield

ROCE (Latest)

5.36%

ROE (Latest)

-5.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -28.08% (YoY

NET PROFIT(9M)

Higher at PKR -22.16 MM

CASH AND EQV(HY)

Highest at PKR 179.98 MM

DEBT-EQUITY RATIO (HY)

Lowest at -3.38 %

-19What is not working for the Company

NET SALES(9M)

At PKR 950.2 MM has Grown at -41.83%

OPERATING CASH FLOW(Y)

Lowest at PKR 45.61 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.23 times

PRE-TAX PROFIT(Q)

Lowest at PKR -29.21 MM

NET PROFIT(Q)

Lowest at PKR -34.04 MM

EPS(Q)

Lowest at PKR -2.97

Here's what is working for Bolan Castings Ltd.

Cash and Eqv

Highest at PKR 179.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -3.38 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -28.08% (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 Bolan Castings Ltd.

Net Sales

At PKR 950.2 MM has Grown at -41.83%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (PKR MM)

Pre-Tax Profit

At PKR -29.21 MM has Fallen at -337.24%

over average net sales of the previous four periods of PKR 12.31 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (PKR MM)

Net Profit

At PKR -34.04 MM has Fallen at -547.75%

over average net sales of the previous four periods of PKR 7.6 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (PKR MM)

Operating Cash Flow

Lowest at PKR 45.61 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)

Pre-Tax Profit

Lowest at PKR -29.21 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PKR MM)

Net Profit

Lowest at PKR -34.04 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PKR MM)

EPS

Lowest at PKR -2.97

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (PKR)

Inventory Turnover Ratio

Lowest at 3.23 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio