Dewan Sugar Mills Ltd. (DWSM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Jauharabad Sugar Mills Ltd.

Imperial Ltd. (Pakistan)

Tariq Corp. Ltd.

Noon Sugar Mills Ltd.

Shahtaj Sugar Mills Ltd.

Faran Sugar Mills Ltd.

Habib Rice Products Ltd.

Al-Noor Sugar Mills Ltd.

Sakrand Sugar Mills Ltd.

Dewan Sugar Mills Ltd.

Haseeb Waqas Sugar Mills Ltd.

Why is Dewan Sugar Mills Ltd. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -15.76% and Operating profit at -8.45% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 0 times

The company has declared Negative results for the last 6 consecutive quarters

PRE-TAX PROFIT(Q) At PKR -287.3 has Fallen at -96.79%
NET PROFIT(Q) At PKR -257.87 MM has Fallen at -116.9%
NET SALES(9M) At PKR 1,615.36 MM has Grown at -24.43%

Risky - Negative EBITDA

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 -157.4%

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 Other Agricultural Products)

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

Is Dewan Sugar Mills Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dewan Sugar Mills Ltd.

33.61%

0.33

69.69%

Pakistan KSE 100 Share

60.28%

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)

-17.40%

EBIT Growth (5y)

-3.66%

EBIT to Interest (avg)

-13.10

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-2.31

Sales to Capital Employed (avg)

2.88

Tax Ratio

9.20%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

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

-0.49

EV to EBIT

-4.04

EV to EBITDA

-6.94

EV to Capital Employed

2.13

EV to Sales

2.33

PEG Ratio

Dividend Yield

ROCE (Latest)

-52.61%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

Mildly Bearish

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

OPERATING PROFIT(Q)

Highest at PKR -37.6 MM

PRE-TAX PROFIT(Q)

Highest at PKR -148.19 MM

NET PROFIT(Q)

Highest at PKR -123.89 MM

EPS(Q)

Highest at PKR -1.35

-18What is not working for the Company

NET PROFIT(9M)

At PKR -714.84 MM has Grown at -71.34%

OPERATING CASH FLOW(Y)

Lowest at PKR 38.5 MM

RAW MATERIAL COST(Y)

Grown by 386.35% (YoY

CASH AND EQV(HY)

Lowest at PKR 51.52 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 45.85%

NET SALES(Q)

Lowest at PKR 77.82 MM

Here's what is working for Dewan Sugar Mills Ltd.

Operating Profit

Highest at PKR -37.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PKR MM)

Pre-Tax Profit

Highest at PKR -148.19 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Net Profit

Highest at PKR -123.89 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

EPS

Highest at PKR -1.35

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PKR)

Here's what is not working for Dewan Sugar Mills Ltd.

Net Sales

At PKR 77.82 MM has Fallen at -90%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (PKR MM)

Operating Cash Flow

Lowest at PKR 38.5 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)

Net Sales

Lowest at PKR 77.82 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)

Cash and Eqv

Lowest at PKR 51.52 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 45.85%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 386.35% (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