ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Descon Oxychem Ltd. ?
1
High Management Efficiency with a high ROE of 25.47%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 47.81
3
Positive results in Mar 25
- NET PROFIT(HY) Higher at PKR 541.26 MM
- RAW MATERIAL COST(Y) Fallen by -88.35% (YoY)
- CASH AND EQV(HY) Highest at PKR 1,900.53 MM
4
With ROE of 25.6, it has a very attractive valuation with a 1.6 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 risen by 63.9% ; the PEG ratio of the company is 0.1
- At the current price, the company has a high dividend yield of 13.1
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Descon Oxychem Ltd. should be less than 10%
- Overall Portfolio exposure to Specialty Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Descon Oxychem Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Descon Oxychem Ltd.
-100.0%
1.33
43.69%
Pakistan KSE 100 Share
26.26%
2.81
22.77%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.32%
EBIT Growth (5y)
4.05%
EBIT to Interest (avg)
47.81
Debt to EBITDA (avg)
0.19
Net Debt to Equity (avg)
-0.21
Sales to Capital Employed (avg)
1.70
Tax Ratio
36.55%
Dividend Payout Ratio
81.40%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
46.38%
ROE (avg)
25.47%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
7
Industry P/E
Price to Book Value
1.82
EV to EBIT
4.03
EV to EBITDA
3.13
EV to Capital Employed
2.09
EV to Sales
0.88
PEG Ratio
0.10
Dividend Yield
11.42%
ROCE (Latest)
51.78%
ROE (Latest)
25.48%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-10What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 6,351.86
RAW MATERIAL COST(Y)
Grown by 12.92% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.07 times
NET SALES(Q)
Lowest at PKR 1,279.04 MM
INTEREST(Q)
Highest at PKR 4.02 MM
PRE-TAX PROFIT(Q)
At PKR 202.69 MM has Fallen at -37.31%
Here's what is not working for Descon Oxychem Ltd.
Interest
At PKR 4.02 MM has Grown at 205.54%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (PKR MM)
Interest Coverage Ratio
Lowest at 6,351.86
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales
Lowest at PKR 1,279.04 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (PKR MM)
Net Sales
At PKR 1,279.04 MM has Fallen at -14.71%
over average net sales of the previous four periods of PKR 1,499.71 MMMOJO Watch
Near term sales trend is negative
Net Sales (PKR MM)
Interest
Highest at PKR 4.02 MM
in the last five periods and Increased by 205.54% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (PKR MM)
Pre-Tax Profit
At PKR 202.69 MM has Fallen at -37.31%
over average net sales of the previous four periods of PKR 323.35 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (PKR MM)
Debtors Turnover Ratio
Lowest at 5.07 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 12.92% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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