Fazal Cloth Mills Ltd. (FZCM) 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

Reliance Cotton Spinning Mills Ltd.

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Din Textile Mills Ltd.

Gatron Industries Ltd.

Nishat Chunian Ltd.

Fazal Cloth Mills Ltd.

Why is Fazal Cloth Mills Ltd. ?

Poor Management Efficiency with a low ROCE of 9.80%

The company has been able to generate a Return on Capital Employed (avg) of 9.80% signifying low profitability per unit of total capital (equity and debt)

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

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 6.39% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 9.80%

Flat results in Mar 25

OPERATING CASH FLOW(Y) Lowest at PKR -3,802.82 MM
NET PROFIT(Q) At PKR 37.89 MM has Fallen at -90%
NET SALES(Q) Lowest at PKR 22,038.21

With ROE of 4.5, it has a attractive valuation with a 0.1 Price to Book Value

The stock is trading at a premium 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 1758.4%

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 Garments & Apparels)

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

Is Fazal Cloth Mills Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Fazal Cloth Mills Ltd.

-100.0%

0.56

51.97%

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)

15.00%

EBIT Growth (5y)

1.36%

EBIT to Interest (avg)

2.19

Debt to EBITDA (avg)

4.23

Net Debt to Equity (avg)

1.02

Sales to Capital Employed (avg)

1.01

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.80%

ROE (avg)

6.39%

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

0.16

EV to EBIT

10.40

EV to EBITDA

7.16

EV to Capital Employed

0.57

EV to Sales

0.59

PEG Ratio

Dividend Yield

ROCE (Latest)

5.52%

ROE (Latest)

0.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Bearish

OBV

Mildly Bearish

No Trend

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

NET PROFIT(Q)

At PKR 179.57 MM has Grown at 513.21%

CASH AND EQV(HY)

Highest at PKR 3,850.03 MM

NET SALES(Q)

Highest at PKR 24,333.55 MM

PRE-TAX PROFIT(Q)

At PKR 243.85 MM has Grown at 141.27%

-15What is not working for the Company

NET PROFIT(HY)

At PKR -85.62 MM has Grown at -104.16%

OPERATING CASH FLOW(Y)

Lowest at PKR -9,597.08 MM

ROCE(HY)

Lowest at -0.08%

RAW MATERIAL COST(Y)

Grown by 25% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.71 times

OPERATING PROFIT MARGIN(Q)

Lowest at 6.75 %

Here's what is working for Fazal Cloth Mills Ltd.

Net Profit

At PKR 179.57 MM has Grown at 513.21%

over average net sales of the previous four periods of PKR 29.28 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (PKR MM)

Net Sales

Highest at PKR 24,333.55 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (PKR MM)

Pre-Tax Profit

At PKR 243.85 MM has Grown at 141.27%

over average net sales of the previous four periods of PKR 101.07 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Cash and Eqv

Highest at PKR 3,850.03 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Fazal Cloth Mills Ltd.

Operating Cash Flow

Lowest at PKR -9,597.08 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)

Operating Profit Margin

Lowest at 6.75 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 6.71 times

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 25% (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