Gul Ahmed Textile Mills Ltd. (GATM) 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

Dawood Lawrencepur Ltd.

Sapphire Fibres Ltd.

Indus Dyeing & Manufacturing Co. Ltd.

Sapphire Textile Mills Ltd.

Mahmood Textile Mills Ltd.

Feroze1888 Mills Ltd.

Gul Ahmed Textile Mills Ltd.

Nishat Mills Ltd.

Ibrahim Fibres Ltd.

Lotte Chemical Pakistan Ltd.

Gatron Industries Ltd.

Why is Gul Ahmed Textile Mills Ltd. ?

Poor Management Efficiency with a low ROCE of 11.38%

The company has been able to generate a Return on Capital Employed (avg) of 11.38% 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 Capital Employed (avg) of 11.38% signifying low profitability per unit of total capital (equity and debt)

Healthy long term growth as Operating profit has grown by an annual rate 28.74%

Flat results in Mar 25

OPERATING CASH FLOW(Y) Lowest at PKR -10,803.36 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 2.43%

With ROE of 9.9, it has a attractive valuation with a 0.3 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 23.9% ; the PEG ratio of the company is 0.1

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 Gul Ahmed Textile Mills Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gul Ahmed Textile Mills Ltd.

17.33%

0.35

38.52%

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)

24.77%

EBIT Growth (5y)

37.45%

EBIT to Interest (avg)

2.47

Debt to EBITDA (avg)

4.01

Net Debt to Equity (avg)

1.50

Sales to Capital Employed (avg)

1.52

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

11.14%

ROE (avg)

14.09%

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

0.43

EV to EBIT

8.18

EV to EBITDA

5.45

EV to Capital Employed

0.77

EV to Sales

0.54

PEG Ratio

Dividend Yield

ROCE (Latest)

9.45%

ROE (Latest)

8.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

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

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -12.51% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 7.53%

OPERATING PROFIT(Q)

Highest at PKR 5,085.61 MM

OPERATING PROFIT MARGIN(Q)

Highest at 11.24 %

PRE-TAX PROFIT(Q)

Highest at PKR 1,641.79 MM

-3What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR -10,803.36 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.43%

Here's what is working for Gul Ahmed Textile Mills Ltd.

Operating Profit

Highest at PKR 5,085.61 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PKR MM)

Operating Profit Margin

Highest at 11.24 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at PKR 1,641.79 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Debtors Turnover Ratio

Highest at 7.53%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -12.51% (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

Depreciation

Highest at PKR 1,685.43 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (PKR MM)

Here's what is not working for Gul Ahmed Textile Mills Ltd.

Operating Cash Flow

Lowest at PKR -10,803.36 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)

Inventory Turnover Ratio

Lowest at 2.43%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio