IGI Life Insurance Ltd. (IGIL) 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

EFU Life Assurance Ltd.

Jubilee Life Insurance Co. Ltd.

IGI Life Insurance Ltd.

Why is IGI Life Insurance Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 4.40%

Poor long term growth as Net Sales has grown by an annual rate of 23.00% and Operating profit at 0%
The company has been able to generate a Return on Equity (avg) of 4.40% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 23.00% and Operating profit at 0%

The company has declared Positive results for the last 11 consecutive quarters

OPERATING CASH FLOW(Y) Highest at PKR 8,500.54 MM
NET PROFIT(HY) At PKR 164.93 MM has Grown at 93.35%
ROCE(HY) Highest at 14.11%

With ROE of 11.9, it has a fair valuation with a 1.6 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 risen by 95% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is IGI Life Insurance Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

IGI Life Insurance Ltd.

-100.0%

0.78

63.36%

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)

23.00%

EBIT Growth (5y)

EBIT to Interest (avg)

1.67

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

30.64%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

4.40%

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

1.40

EV to EBIT

EV to EBITDA

21.66

EV to Capital Employed

1.56

EV to Sales

0.15

PEG Ratio

0.13

Dividend Yield

ROCE (Latest)

ROE (Latest)

11.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

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

5What is working for the Company

ROCE(HY)

Highest at 14.17%

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -64.22 %

NET SALES(Q)

Highest at PKR 4,901.29 MM

-5What is not working for the Company

INTEREST(HY)

At PKR 4.11 MM has Grown at 141.81%

OPERATING PROFIT(Q)

Lowest at PKR 105.26 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.15 %

Here's what is working for IGI Life Insurance Ltd.

Net Sales

Highest at PKR 4,901.29 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (PKR MM)

Debt-Equity Ratio

Lowest at -64.22 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

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

Here's what is not working for IGI Life Insurance Ltd.

Interest

At PKR 4.11 MM has Grown at 141.81%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Operating Profit

Lowest at PKR 105.26 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PKR MM)

Operating Profit Margin

Lowest at 2.15 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales