Engro Polymer & Chemicals Ltd. (EPCL) 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

Dynea Pakistan Ltd.

Ghani Global Holdings Ltd.

Al-Abbas Sugar Mills Ltd.

Sitara Chemicals Industries Ltd.

Shahmurad Sugar Mills Ltd.

Pakistan Oxygen Ltd.

Descon Oxychem Ltd.

Lucky Core Industries Ltd.

Nimir Industrial Chemicals Ltd.

Ittehad Chemicals Ltd.

Engro Polymer & Chemicals Ltd.

Why is Engro Polymer & Chemicals Ltd. ?

With a fall in Net Profit of NAN%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 5 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at PKR -1,227.38 MM
NET PROFIT(Q) At PKR -824.59 MM has Fallen at -1,953.99%
INTEREST(HY) At PKR 3,276.88 MM has Grown at 70.88%

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 -101.2%

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 Specialty Chemicals)

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

Is Engro Polymer & Chemicals Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Engro Polymer & Chemicals Ltd.

-26.86%

-0.62

36.40%

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)

19.09%

EBIT Growth (5y)

-8.11%

EBIT to Interest (avg)

5.66

Debt to EBITDA (avg)

1.67

Net Debt to Equity (avg)

1.58

Sales to Capital Employed (avg)

1.25

Tax Ratio

96.85%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

41.29%

ROE (avg)

28.13%

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

1.13

EV to EBIT

22.29

EV to EBITDA

11.54

EV to Capital Employed

1.05

EV to Sales

0.83

PEG Ratio

Dividend Yield

ROCE (Latest)

4.72%

ROE (Latest)

-7.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 3.97%

-27What is not working for the Company

ROCE(HY)

Lowest at -7.21%

DEBT-EQUITY RATIO (HY)

Highest at 159.72 %

RAW MATERIAL COST(Y)

Grown by 111.74% (YoY

CASH AND EQV(HY)

Lowest at PKR 9,098.19 MM

OPERATING PROFIT(Q)

Lowest at PKR -606.53 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.07 %

PRE-TAX PROFIT(Q)

Lowest at PKR -2,333.89 MM

NET PROFIT(Q)

Lowest at PKR -2,405.54 MM

EPS(Q)

Lowest at PKR -2.65

Here's what is working for Engro Polymer & Chemicals Ltd.

Inventory Turnover Ratio

Highest at 3.97%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Engro Polymer & Chemicals Ltd.

Pre-Tax Profit

At PKR -2,333.89 MM has Fallen at -250.77%

over average net sales of the previous four periods of PKR -665.36 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (PKR MM)

Net Profit

At PKR -2,405.54 MM has Fallen at -11,364.22%

over average net sales of the previous four periods of PKR -20.98 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (PKR MM)

Debt-Equity Ratio

Highest at 159.72 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Profit

Lowest at PKR -606.53 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PKR MM)

Operating Profit Margin

Lowest at -3.07 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at PKR -2,333.89 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 -2,405.54 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PKR MM)

EPS

Lowest at PKR -2.65

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (PKR)

Cash and Eqv

Lowest at PKR 9,098.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 111.74% (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