Fauji Foods Ltd. (FFL) 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

National Foods Ltd. (Pakistan)

Al-Abbas Sugar Mills Ltd.

Rafhan Maize Products Co. Ltd.

Nestlé Pakistan Ltd.

At-Tahur Ltd.

Habib Sugar Mills Ltd.

Frieslandcampina Engro Pakistan Ltd.

Fauji Foods Ltd.

Shakarganj Ltd.

Why is Fauji Foods Ltd. ?

Poor Management Efficiency with a low ROE of 3.36%

The company has been able to generate a Return on Equity (avg) of 3.36% signifying low profitability per unit of shareholders funds

High Debt Company with a Debt to Equity ratio (avg) at 0 times

Poor long term growth as Operating profit has grown by an annual rate 18.85% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 0 times
The company has been able to generate a Return on Equity (avg) of 3.36% signifying low profitability per unit of shareholders funds

Flat results in Mar 25

NET PROFIT(HY) At PKR 431.56 MM has Grown at -47.19%
INTEREST(Q) At PKR 16.99 MM has Grown at 21.05%
RAW MATERIAL COST(Y) Grown by 8.5% (YoY)

With ROE of 9, it has a attractive valuation with a 4.3 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 1.2% ; the PEG ratio of the company is 40.2

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 FMCG)

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

Is Fauji Foods Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Fauji Foods Ltd.

-100.0%

1.73

46.16%

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)

30.43%

EBIT Growth (5y)

20.63%

EBIT to Interest (avg)

3.44

Debt to EBITDA (avg)

5.33

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

1.63

Tax Ratio

35.70%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.29%

ROE (avg)

3.36%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.17

EV to EBIT

65.77

EV to EBITDA

35.70

EV to Capital Employed

4.52

EV to Sales

2.04

PEG Ratio

Dividend Yield

ROCE (Latest)

6.88%

ROE (Latest)

10.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

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

13What is working for the Company

ROCE(HY)

Highest at 10.74%

CASH AND EQV(HY)

Highest at PKR 7,495.43 MM

DEBT-EQUITY RATIO (HY)

Lowest at -37.26 %

INVENTORY TURNOVER RATIO(HY)

Highest at 10.12%

DEBTORS TURNOVER RATIO(HY)

Highest at 9.29%

PRE-TAX PROFIT(Q)

Highest at PKR 546.72 MM

NET PROFIT(Q)

Highest at PKR 398.94 MM

EPS(Q)

Highest at PKR 0.16

-5What is not working for the Company

INTEREST(Q)

Highest at PKR 21.14 MM

Here's what is working for Fauji Foods Ltd.

Pre-Tax Profit

Highest at PKR 546.72 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 398.94 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

EPS

Highest at PKR 0.16

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PKR)

Cash and Eqv

Highest at PKR 7,495.43 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -37.26 %

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 10.12%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 9.29%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Fauji Foods Ltd.

Interest

At PKR 21.14 MM has Grown at 24.46%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Interest

Highest at PKR 21.14 MM

in the last five periods and Increased by 24.46% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)