ScoreWhy is Ittefaq Iron Industries Ltd. ?
1
Poor Management Efficiency with a low ROCE of 2.71%
- The company has been able to generate a Return on Capital Employed (avg) of 2.71% signifying low profitability per unit of total capital (equity and debt)
2
Low ability to service debt as the company has a high Debt to EBITDA ratio of 18.00 times
- Poor long term growth as Operating profit has grown by an annual rate -232.67% of over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 18.00 times
- The company has been able to generate a Return on Equity (avg) of 1.72% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Operating profit has grown by an annual rate -232.67% of over the last 5 years
4
Flat results in Dec 24
- NET PROFIT(9M) At PKR -590.4 MM has Grown at -264.24%
- OPERATING CASH FLOW(Y) Lowest at PKR 111.94 MM
- NET SALES(9M) At PKR 1,811.35 MM has Grown at -27.62%
5
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 0%, its profits have fallen by -175.3%
Real-Time Research ReportHow 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 Ferrous Metals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Ittefaq Iron Industries Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Ittefaq Iron Industries Ltd.
23.81%
0.53
56.03%
Pakistan KSE 100 Share
26.26%
2.81
22.77%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-11.52%
EBIT Growth (5y)
-230.20%
EBIT to Interest (avg)
0.42
Debt to EBITDA (avg)
18.00
Net Debt to Equity (avg)
0.35
Sales to Capital Employed (avg)
0.63
Tax Ratio
10.09%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.71%
ROE (avg)
1.72%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.43
EV to EBIT
-3.76
EV to EBITDA
-4.30
EV to Capital Employed
0.58
EV to Sales
0.95
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-15.46%
ROE (Latest)
-20.68%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -24.16% (YoY
PRE-TAX PROFIT(Q)
Highest at PKR -80.79 MM
NET PROFIT(Q)
Highest at PKR -86.77 MM
EPS(Q)
Highest at PKR -0.6
-8What is not working for the Company
NET SALES(Q)
At PKR 478.75 MM has Fallen at -27.79%
DEBT-EQUITY RATIO
(HY)
Highest at 42.13 %
Here's what is working for Ittefaq Iron Industries Ltd.
Pre-Tax Profit
Highest at PKR -80.79 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (PKR MM)
Net Profit
Highest at PKR -86.77 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (PKR MM)
EPS
Highest at PKR -0.6
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (PKR)
Raw Material Cost
Fallen by -24.16% (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 Ittefaq Iron Industries Ltd.
Net Sales
At PKR 478.75 MM has Fallen at -27.79%
over average net sales of the previous four periods of PKR 662.98 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (PKR MM)
Debt-Equity Ratio
Highest at 42.13 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
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