Hoechst Pakistan Ltd. (SAPL) 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

Hoechst Pakistan Ltd.

Otsuka Pakistan Ltd.

Abbott Laboratories (Pakistan) Ltd.

Haleon Pakistan Ltd.

Highnoon Laboratories Ltd.

GlaxoSmithKline Pakistan Ltd.

AGP Ltd.

Ferozsons Laboratories Ltd.

Macter International Ltd.

The Searle Co. Ltd.

Citi Pharma Ltd.

Why is Hoechst Pakistan Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 29.65

Low Debt Company with Strong Long Term Fundamental Strength

With ROE of 28.2, it has a attractive valuation with a 4.3 Price to Book Value

Over the past year, while the stock has generated a return of 0%, its profits have risen by 96.9% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 4.2

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Hoechst Pakistan Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

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

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

Is Hoechst Pakistan Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hoechst Pakistan Ltd.

-100.0%

2.83

45.32%

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)

16.63%

EBIT Growth (5y)

36.17%

EBIT to Interest (avg)

29.65

Debt to EBITDA (avg)

0.10

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

3.92

Tax Ratio

42.86%

Dividend Payout Ratio

70.11%

Pledged Shares

Institutional Holding

ROCE (avg)

44.09%

ROE (avg)

15.90%

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

5.64

EV to EBIT

7.67

EV to EBITDA

7.20

EV to Capital Employed

8.56

EV to Sales

1.25

PEG Ratio

0.43

Dividend Yield

2.65%

ROCE (Latest)

111.56%

ROE (Latest)

33.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

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

19What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PKR 3,653.35 MM

ROCE(HY)

Highest at 36.23%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

DIVIDEND PAYOUT RATIO(Y)

Highest at 61.06%

RAW MATERIAL COST(Y)

Fallen by -10.29% (YoY

CASH AND EQV(HY)

Highest at PKR 4,387.7 MM

DIVIDEND PER SHARE(HY)

Highest at PKR 24.81

NET SALES(Q)

Highest at PKR 8,720.07 MM

OPERATING PROFIT(Q)

Highest at PKR 1,565.63 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.95 %

PRE-TAX PROFIT(Q)

Highest at PKR 1,288.42 MM

NET PROFIT(Q)

Highest at PKR 789.79 MM

EPS(Q)

Highest at PKR 81.89

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Hoechst Pakistan Ltd.

Operating Cash Flow

Highest at PKR 3,653.35 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PKR MM)

Net Sales

Highest at PKR 8,720.07 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (PKR MM)

Operating Profit

Highest at PKR 1,565.63 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PKR MM)

Operating Profit Margin

Highest at 17.95 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at PKR 1,288.42 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 789.79 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

EPS

Highest at PKR 81.89

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PKR)

Cash and Eqv

Highest at PKR 4,387.7 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at PKR 24.81

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (PKR)

Dividend Payout Ratio

Highest at 61.06%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -10.29% (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