Kohat Textile Mills Ltd. (KOHTM) 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

Shahtaj Textile Ltd.

Prosperity Weaving Mills Ltd.

Kohat Textile Mills Ltd.

Crescent Cotton Mills Ltd.

Sana Industries Ltd.

Cordoba Logistics & Ventures Ltd.

Colony Textile Mills Ltd.

Ellcot Spinning Mills Ltd.

Crescent Fibres Ltd.

Rupali Polyester Ltd.

Kohinoor Spinning Mills Ltd.

Why is Kohat Textile Mills Ltd. ?

Poor Management Efficiency with a low ROCE of 12.16%

The company has been able to generate a Return on Capital Employed (avg) of 12.16% 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 Equity (avg) of 7.30% signifying low profitability per unit of shareholders funds

Healthy long term growth as Operating profit has grown by an annual rate 26.08%

Positive results in Mar 25

ROCE(HY) Highest at 7.93%
INTEREST COVERAGE RATIO(Q) Highest at 221.06
DIVIDEND PAYOUT RATIO(Y) Highest at 22.75%

With ROE of 7.7, it has a attractive valuation with a 0.4 Price to Book Value

Over the past year, while the stock has generated a return of 0%, its profits have risen by 69.3% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kohat Textile Mills Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

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

Is Kohat Textile Mills Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Kohat Textile Mills Ltd.

-100.0%

5.09

76.29%

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)

24.13%

EBIT Growth (5y)

47.18%

EBIT to Interest (avg)

2.31

Debt to EBITDA (avg)

2.95

Net Debt to Equity (avg)

0.65

Sales to Capital Employed (avg)

1.10

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

14.82%

Pledged Shares

Institutional Holding

ROCE (avg)

12.16%

ROE (avg)

7.30%

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

0.25

EV to EBIT

6.17

EV to EBITDA

5.20

EV to Capital Employed

0.59

EV to Sales

0.60

PEG Ratio

0.13

Dividend Yield

5.36%

ROCE (Latest)

9.55%

ROE (Latest)

6.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

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

17What is working for the Company

ROCE(HY)

Highest at 7.93%

INTEREST COVERAGE RATIO(Q)

Highest at 221.06

DIVIDEND PAYOUT RATIO(Y)

Highest at 22.75%

RAW MATERIAL COST(Y)

Fallen by -2.88% (YoY

CASH AND EQV(HY)

Highest at PKR 41.03 MM

DIVIDEND PER SHARE(HY)

Highest at PKR 5.68

PRE-TAX PROFIT(Q)

Highest at PKR 104.58 MM

NET PROFIT(Q)

Highest at PKR 91.45 MM

EPS(Q)

Highest at PKR 4.4

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Kohat Textile Mills Ltd.

Interest Coverage Ratio

Highest at 221.06

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

Highest at PKR 104.58 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Net Profit

Highest at PKR 91.45 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

Net Profit

At PKR 91.45 MM has Grown at 138.38%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

EPS

Highest at PKR 4.4

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PKR)

Cash and Eqv

Highest at PKR 41.03 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at PKR 5.68

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (PKR)

Dividend Payout Ratio

Highest at 22.75%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -2.88% (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

Highest at PKR 39.83 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (PKR MM)

Depreciation

At PKR 39.83 MM has Grown at 34.49%

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)