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.
49.04%
1.33
43.69%
Pakistan KSE 100 Share
60.28%
2.81
22.77%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.96%
EBIT Growth (5y)
12.39%
EBIT to Interest (avg)
47.81
Debt to EBITDA (avg)
0.19
Net Debt to Equity (avg)
-0.21
Sales to Capital Employed (avg)
1.77
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
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
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
-3What is not working for the Company
INTEREST(Q)
At PKR 3.81 MM has Grown at 157.18%
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.3%
Here's what is working for Descon Oxychem Ltd.
Net Profit
Higher at PKR 541.26 MM
than preceding 12 month period ended Mar 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (PKR MM)
Net Profit
At PKR 541.26 MM has Grown at 158.61%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (PKR MM)
Cash and Eqv
Highest at PKR 1,900.53 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -88.35% (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 Descon Oxychem Ltd.
Interest
At PKR 3.81 MM has Grown at 157.18%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (PKR MM)
Inventory Turnover Ratio
Lowest at 3.3%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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