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

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Thal Industries Corp. Ltd.

Mehran Sugar Mills Ltd.

Habib Sugar Mills Ltd.

Faran Sugar Mills Ltd.

Matco Foods Ltd.

Unity Foods Ltd.

Tandlianwala Sugar Mills Ltd.

Habib Rice Products Ltd.

Premier Sugar Mills & Distillery Co. Ltd.

Chashma Sugar Mills Ltd.

Mirpurkhas Sugar Mills Ltd.

Why is Faran Sugar Mills Ltd. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 15.78% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 0 times

Negative results in Mar 25

NET PROFIT(9M) At PKR -844.88 MM has Grown at -1,316.4%
ROCE(HY) Lowest at -74.74%
INTEREST(Q) At PKR 275.81 MM has Grown at 77.6%

Risky - Negative Operating Profits

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 -497.8%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Faran Sugar Mills Ltd. should be less than 10%
Overall Portfolio exposure to Other Agricultural Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Faran Sugar Mills Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Faran Sugar Mills Ltd.

-100.0%

-0.30

47.08%

Pakistan KSE 100 Share

26.26%

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)

13.43%

EBIT Growth (5y)

60.98%

EBIT to Interest (avg)

0.47

Debt to EBITDA (avg)

12.51

Net Debt to Equity (avg)

5.39

Sales to Capital Employed (avg)

1.48

Tax Ratio

43.67%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.60%

ROE (avg)

4.87%

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

1.19

EV to EBIT

-368.48

EV to EBITDA

58.08

EV to Capital Employed

1.04

EV to Sales

0.76

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.28%

ROE (Latest)

-31.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PKR 1,352.88 MM

NET PROFIT(HY)

Higher at PKR 460.59 MM

RAW MATERIAL COST(Y)

Fallen by -43.33% (YoY

CASH AND EQV(HY)

Highest at PKR 1,322.62 MM

DEBT-EQUITY RATIO (HY)

Lowest at 139.27 %

INVENTORY TURNOVER RATIO(HY)

Highest at 5.01 times

PRE-TAX PROFIT(Q)

At PKR 6.94 MM has Grown at 129.95%

-5What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 12.61 times

NET SALES(Q)

Lowest at PKR 1,527.69 MM

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

Net Profit

At PKR 460.59 MM has Grown at 208.62%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (PKR MM)

Operating Cash Flow

Highest at PKR 1,352.88 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PKR MM)

Net Profit

Higher at PKR 460.59 MM

than preceding 12 month period ended Dec 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (PKR MM)

Pre-Tax Profit

At PKR 6.94 MM has Grown at 129.95%

over average net sales of the previous four periods of PKR -23.18 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Cash and Eqv

Highest at PKR 1,322.62 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 139.27 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 5.01 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -43.33% (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 Faran Sugar Mills Ltd.

Net Sales

At PKR 1,527.69 MM has Fallen at -48.94%

over average net sales of the previous four periods of PKR 2,991.77 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (PKR MM)

Net Sales

Lowest at PKR 1,527.69 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)

Debtors Turnover Ratio

Lowest at 12.61 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio