IGI Holdings Ltd. (IGIHL) 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

Jubilee General Insurance Co. Ltd.

Adamjee Insurance Co. Ltd.

The United Insurance Co. of Pakistan Ltd.

IGI Holdings Ltd.

EFU General Insurance Ltd.

Pakistan Reinsurance Co. Ltd.

Century Insurance Co., Ltd.

Jubilee Life Insurance Co. Ltd.

Why is IGI Holdings Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 4.72%

Poor long term growth as Operating profit has grown by an annual rate of 21.35%
The company has been able to generate a Return on Equity (avg) of 4.72% signifying low profitability per unit of shareholders funds

Negative results in Mar 25

NET PROFIT(HY) At PKR -295.83 MM has Grown at -122.8%
ROCE(HY) Lowest at 1.18%
OPERATING PROFIT MARGIN(Q) Lowest at 6.79 %

With ROE of 1.3, it has a expensive valuation with a 0.4 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 fallen by -79.5%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to IGI Holdings Ltd. should be less than 10%
Overall Portfolio exposure to Insurance should be less than 30%

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

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

Is IGI Holdings Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

IGI Holdings Ltd.

23.31%

0.66

43.49%

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)

19.46%

EBIT Growth (5y)

22.21%

EBIT to Interest (avg)

69.57

Debt to EBITDA (avg)

12.22

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.35

Tax Ratio

45.64%

Dividend Payout Ratio

122.96%

Pledged Shares

Institutional Holding

ROCE (avg)

0.14%

ROE (avg)

4.72%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

210

Industry P/E

Price to Book Value

0.68

EV to EBIT

EV to EBITDA

87.29

EV to Capital Employed

0.64

EV to Sales

1.22

PEG Ratio

Dividend Yield

2.35%

ROCE (Latest)

ROE (Latest)

0.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly 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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PKR 17,183.29 MM

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

NET SALES(Q)

Highest at PKR 8,004.68 MM

OPERATING PROFIT(Q)

Highest at PKR 1,485.24 MM

OPERATING PROFIT MARGIN(Q)

Highest at 18.55 %

PRE-TAX PROFIT(Q)

Highest at PKR 1,505.44 MM

NET PROFIT(Q)

Highest at PKR 1,633.9 MM

EPS(Q)

Highest at PKR 11.46

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for IGI Holdings Ltd.

Net Profit

At PKR 1,633.9 MM has Grown at 4,980.04%

over average net sales of the previous four periods of PKR 32.16 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (PKR MM)

Operating Cash Flow

Highest at PKR 17,183.29 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 8,004.68 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (PKR MM)

Operating Profit

Highest at PKR 1,485.24 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PKR MM)

Operating Profit Margin

Highest at 18.55 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at PKR 1,505.44 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Pre-Tax Profit

At PKR 1,505.44 MM has Grown at 120.27%

over average net sales of the previous four periods of PKR 683.44 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Net Profit

Highest at PKR 1,633.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

EPS

Highest at PKR 11.46

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PKR)

Raw Material Cost

Fallen by 0% (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

At PKR 95.42 MM has Grown at 68.56%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (PKR MM)