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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Otsuka Pakistan Ltd.

Abbott Laboratories (Pakistan) Ltd.

GlaxoSmithKline Pakistan Ltd.

Haleon Pakistan Ltd.

Highnoon Laboratories Ltd.

Hoechst Pakistan Ltd.

AGP Ltd.

Ferozsons Laboratories Ltd.

Macter International Ltd.

Citi Pharma Ltd.

The Searle Co. 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 hold?

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.

122.34%

2.83

45.32%

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)

17.02%

EBIT Growth (5y)

35.38%

EBIT to Interest (avg)

29.65

Debt to EBITDA (avg)

0.10

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

3.87

Tax Ratio

42.86%

Dividend Payout Ratio

79.82%

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

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PKR 5,016.92 MM

ROCE(HY)

Highest at 38.65%

DIVIDEND PAYOUT RATIO(Y)

Highest at 265.8%

RAW MATERIAL COST(Y)

Fallen by -21.53% (YoY

NET PROFIT(9M)

Higher at PKR 2,346.84 MM

CASH AND EQV(HY)

Highest at PKR 4,007.72 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 35.33 times

DIVIDEND PER SHARE(HY)

Highest at PKR 35.33

-4What is not working for the Company

INTEREST(Q)

At PKR 23.41 MM has Grown at 28.16%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.64 times

NET SALES(Q)

At PKR 6,372.57 MM has Fallen at -17.28%

Here's what is working for Hoechst Pakistan Ltd.

Operating Cash Flow

Highest at PKR 5,016.92 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PKR MM)

Cash and Eqv

Highest at PKR 4,007.72 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 35.33 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at PKR 35.33

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (PKR)

Net Profit

Higher at PKR 2,346.84 MM

than preceding 12 month period ended Dec 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (PKR MM)

Dividend Payout Ratio

Highest at 265.8%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -21.53% (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 102.14 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 Hoechst Pakistan Ltd.

Interest

At PKR 23.41 MM has Grown at 28.16%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Net Sales

At PKR 6,372.57 MM has Fallen at -17.28%

over average net sales of the previous four periods of PKR 7,703.48 MM

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)

Inventory Turnover Ratio

Lowest at 2.64 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio