Honda Atlas Cars (Pakistan) Ltd. (HCAR) 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

Atlas Honda Ltd.

Ghandhara Industries Ltd.

Indus Motor Co. Ltd.

Sazgar Engineering Works Ltd.

Honda Atlas Cars (Pakistan) Ltd.

Dewan Farooque Motors Ltd.

Pak Suzuki Motors Co. Ltd.

Why is Honda Atlas Cars (Pakistan) Ltd. ?

Poor Management Efficiency with a low ROE of 9.22%

The company has been able to generate a Return on Equity (avg) of 9.22% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 12.64

Poor long term growth as Net Sales has grown by an annual rate of 7.24% and Operating profit at 6.57% over the last 5 years

Positive results in Mar 25

OPERATING CASH FLOW(Y) Highest at PKR 11,959.69 MM
ROCE(HY) Highest at 12.02%
RAW MATERIAL COST(Y) Fallen by -22.04% (YoY)

With ROE of 11.6, it has a attractive valuation with a 1.8 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 16.1% ; the PEG ratio of the company is 1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Honda Atlas Cars (Pakistan) Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is Honda Atlas Cars (Pakistan) Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Honda Atlas Cars (Pakistan) Ltd.

-9.88%

-0.06

44.38%

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)

13.17%

EBIT Growth (5y)

25.83%

EBIT to Interest (avg)

12.64

Debt to EBITDA (avg)

0.38

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

2.77

Tax Ratio

18.69%

Dividend Payout Ratio

42.17%

Pledged Shares

Institutional Holding

ROCE (avg)

48.34%

ROE (avg)

9.22%

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

1.88

EV to EBIT

8.78

EV to EBITDA

6.51

EV to Capital Employed

1.98

EV to Sales

0.46

PEG Ratio

0.33

Dividend Yield

2.63%

ROCE (Latest)

22.60%

ROE (Latest)

14.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PKR 7,486.37 MM

NET PROFIT(HY)

Higher at PKR 2,510.81 MM

ROCE(HY)

Highest at 15.14%

INTEREST COVERAGE RATIO(Q)

Highest at 855.22

RAW MATERIAL COST(Y)

Fallen by -42.59% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.95%

NET SALES(Q)

At PKR 26,461.97 MM has Grown at 35.59%

PRE-TAX PROFIT(Q)

At PKR 1,460.83 MM has Grown at 78.43%

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Honda Atlas Cars (Pakistan) Ltd.

Interest Coverage Ratio

Highest at 855.22

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

Higher at PKR 2,510.81 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (PKR MM)

Operating Cash Flow

Highest at PKR 7,486.37 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

At PKR 26,461.97 MM has Grown at 35.59%

over average net sales of the previous four periods of PKR 19,516.41 MM

MOJO Watch

Near term sales trend is positive

Net Sales (PKR MM)

Pre-Tax Profit

At PKR 1,460.83 MM has Grown at 78.43%

over average net sales of the previous four periods of PKR 818.69 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Inventory Turnover Ratio

Highest at 4.95%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -42.59% (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 412.33 MM

in the last five periods

MOJO Watch

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

Depreciation (PKR MM)