Why is Cherat Packaging Ltd. ?
1
High Debt Company with a Debt to Equity ratio (avg) at 0 times
- High Debt Company with a Debt to Equity ratio (avg) at 0 times
2
High Debt company with Weak Long Term Fundamental Strength
3
Negative results in Mar 25
- ROCE(HY) Lowest at 5.04%
- PRE-TAX PROFIT(Q) At PKR 91.32 has Fallen at -66.36%
- DEBTORS TURNOVER RATIO(HY) Lowest at 5.05%
4
With ROE of 4.8, it has a expensive valuation with a 0.6 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 -60.8%
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 Packaging)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Cherat Packaging Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Cherat Packaging Ltd.
-100.0%
-0.10
38.90%
Pakistan KSE 100 Share
60.28%
2.81
22.77%
Quality key factors
Factor
Value
Sales Growth (5y)
6.55%
EBIT Growth (5y)
-23.86%
EBIT to Interest (avg)
2.57
Debt to EBITDA (avg)
2.42
Net Debt to Equity (avg)
0.36
Sales to Capital Employed (avg)
1.20
Tax Ratio
6.01%
Dividend Payout Ratio
41.32%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
13.79%
ROE (avg)
11.37%
Valuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
0.58
EV to EBIT
20.33
EV to EBITDA
10.75
EV to Capital Employed
0.69
EV to Sales
0.63
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
3.38%
ROE (Latest)
3.98%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
4What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -54.01% (YoY
CASH AND EQV(HY)
Highest at PKR 2,643.34 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 3.07%
NET SALES(Q)
Highest at PKR 3,309.67 MM
-13What is not working for the Company
ROCE(HY)
Lowest at 5.04%
PRE-TAX PROFIT(Q)
At PKR 91.32 MM has Fallen at -66.36%
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.05%
NET PROFIT(Q)
At PKR 85.23 MM has Fallen at -65.5%
Here's what is working for Cherat Packaging Ltd.
Net Sales
Highest at PKR 3,309.67 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (PKR MM)
Cash and Eqv
Highest at PKR 2,643.34 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 3.07%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -54.01% (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 Cherat Packaging Ltd.
Pre-Tax Profit
At PKR 91.32 MM has Fallen at -66.36%
over average net sales of the previous four periods of PKR 271.48 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (PKR MM)
Net Profit
At PKR 85.23 MM has Fallen at -65.5%
over average net sales of the previous four periods of PKR 247.06 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (PKR MM)
Debtors Turnover Ratio
Lowest at 5.05%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






