JK Spinning Mills Ltd. (JKSM) 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

Dawood Lawrencepur Ltd.

Reliance Cotton Spinning Mills Ltd.

Indus Dyeing & Manufacturing Co. Ltd.

Suraj Cotton Mills Ltd.

JK Spinning Mills Ltd.

Gadoon Textile Mills Ltd.

Nishat Chunian Ltd.

Gul Ahmed Textile Mills Ltd.

Din Textile Mills Ltd.

Gatron Industries Ltd.

Fazal Cloth Mills Ltd.

Why is JK Spinning Mills Ltd. ?

Poor Management Efficiency with a low ROCE of 17.03%

The company has been able to generate a Return on Capital Employed (avg) of 17.03% signifying low profitability per unit of total capital (equity and debt)

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 17.03% signifying low profitability per unit of total capital (equity and debt)

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 17.03%

Flat results in Mar 25

RAW MATERIAL COST(Y) Grown by 33.11% (YoY)
OPERATING PROFIT(Q) Lowest at PKR 744.54
OPERATING PROFIT MARGIN(Q) Lowest at 6.24 %

With ROE of 5.3, it has a expensive valuation with a 0.5 Price to Book Value

Over the past year, while the stock has generated a return of 0%, its profits have risen by 75.3% ; 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 Garments & Apparels)

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

Is JK Spinning Mills Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

JK Spinning Mills Ltd.

49.24%

0.50

75.66%

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)

22.76%

EBIT Growth (5y)

6.35%

EBIT to Interest (avg)

5.60

Debt to EBITDA (avg)

2.36

Net Debt to Equity (avg)

0.78

Sales to Capital Employed (avg)

1.51

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

39.82%

Pledged Shares

Institutional Holding

ROCE (avg)

17.03%

ROE (avg)

17.70%

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

1.47

EV to EBIT

15.27

EV to EBITDA

10.13

EV to Capital Employed

1.25

EV to Sales

0.78

PEG Ratio

Dividend Yield

0.99%

ROCE (Latest)

8.17%

ROE (Latest)

3.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PKR 2,871 MM

CASH AND EQV(HY)

Highest at PKR 1,878.81 MM

NET SALES(Q)

Highest at PKR 11,924.74 MM

-6What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 33.11% (YoY

OPERATING PROFIT(Q)

Lowest at PKR 744.54 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.24 %

NET PROFIT(Q)

At PKR 107.29 MM has Fallen at -46.22%

Here's what is working for JK Spinning Mills Ltd.

Operating Cash Flow

Highest at PKR 2,871 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 11,924.74 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (PKR MM)

Cash and Eqv

Highest at PKR 1,878.81 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for JK Spinning Mills Ltd.

Operating Profit

Lowest at PKR 744.54 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PKR MM)

Operating Profit Margin

Lowest at 6.24 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At PKR 107.29 MM has Fallen at -46.22%

over average net sales of the previous four periods of PKR 199.49 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PKR MM)

Raw Material Cost

Grown by 33.11% (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