Halwani Bros Co. Ltd. (6001) 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

Halwani Bros Co. Ltd.

Why is Halwani Bros Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 11.66%

The company has been able to generate a Return on Capital Employed (avg) of 11.66% signifying low profitability per unit of total capital (equity and debt)

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

Poor long term growth as Net Sales has grown by an annual rate of -3.05% and Operating profit at -14.92% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 10.67% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -3.05% and Operating profit at -14.92% over the last 5 years

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at SAR 95.74 MM
INTEREST COVERAGE RATIO(Q) Highest at 465.35
RAW MATERIAL COST(Y) Fallen by -0.46% (YoY)

With ROE of 15.71%, it has a very expensive valuation with a 4.53 Price to Book Value

Over the past year, while the stock has generated a return of -44.04%, its profits have risen by 186.8% ; the PEG ratio of the company is 0.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Halwani Bros Co. Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Halwani Bros Co. Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Halwani Bros Co. Ltd.

-46.09%

-1.11

32.36%

Saudi Arabia All Share TASI

-11.13%

-0.71

15.65%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.05%

EBIT Growth (5y)

-14.92%

EBIT to Interest (avg)

7.98

Debt to EBITDA (avg)

2.12

Net Debt to Equity (avg)

0.75

Sales to Capital Employed (avg)

1.62

Tax Ratio

25.40%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

11.66%

ROE (avg)

10.67%

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

4.53

EV to EBIT

19.11

EV to EBITDA

13.20

EV to Capital Employed

2.98

EV to Sales

1.73

PEG Ratio

0.15

Dividend Yield

ROCE (Latest)

15.60%

ROE (Latest)

15.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly 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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SAR 95.74 MM

INTEREST COVERAGE RATIO(Q)

Highest at 465.35

RAW MATERIAL COST(Y)

Fallen by -0.46% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 45.66 %

DEBTORS TURNOVER RATIO(HY)

Highest at 7.52 times

-1What is not working for the Company

CASH AND EQV(HY)

Lowest at SAR 23.68 MM

Here's what is working for Halwani Bros Co. Ltd.

Operating Cash Flow

Highest at SAR 95.74 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 (SAR MM)

Interest Coverage Ratio

Highest at 465.35

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 45.66 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 7.52 times

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 -0.46% (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 SAR 9.78 MM

in the last five periods

MOJO Watch

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

Depreciation (SAR MM)

Here's what is not working for Halwani Bros Co. Ltd.

Cash and Eqv

Lowest at SAR 23.68 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents