Interloop Ltd. (ILP) 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

Masood Textile Mills Ltd.

Interloop Ltd.

Bata Pakistan Ltd.

Artistic Denim Mills Ltd.

Why is Interloop Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at 0 times

High Debt Company with a Debt to Equity ratio (avg) at 0 times
The company has been able to generate a Return on Capital Employed (avg) of 19.57% signifying low profitability per unit of total capital (equity and debt)

The company has declared Negative results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at PKR -9,003.35 MM
ROCE(HY) Lowest at 10.28%
RAW MATERIAL COST(Y) Grown by 31.64% (YoY)

With ROE of 10.3, it has a expensive 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 fallen by -71.4%
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 Interloop Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is Interloop Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Interloop Ltd.

-100.0%

-0.54

39.44%

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)

35.06%

EBIT Growth (5y)

40.13%

EBIT to Interest (avg)

4.60

Debt to EBITDA (avg)

2.86

Net Debt to Equity (avg)

1.82

Sales to Capital Employed (avg)

1.20

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

25.26%

Pledged Shares

Institutional Holding

ROCE (avg)

19.57%

ROE (avg)

30.00%

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

1.75

EV to EBIT

9.82

EV to EBITDA

7.10

EV to Capital Employed

1.29

EV to Sales

1.04

PEG Ratio

Dividend Yield

1.43%

ROCE (Latest)

13.12%

ROE (Latest)

10.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR -9,003.35 MM

ROCE(HY)

Lowest at 10.28%

RAW MATERIAL COST(Y)

Grown by 31.64% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 182.49 %

PRE-TAX PROFIT(Q)

Fallen at -58.39%

NET PROFIT(Q)

Fallen at -64.38%

Here's what is working for Interloop Ltd.

Depreciation

Highest at PKR 1,865.67 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 Interloop Ltd.

Operating Cash Flow

Lowest at PKR -9,003.35 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)

Pre-Tax Profit

Fallen at -58.39%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PKR MM)

Net Profit

Fallen at -64.38%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PKR MM)

Debt-Equity Ratio

Highest at 182.49 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 31.64% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales