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

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.

Crescent Fibres Ltd.

Ellcot Spinning Mills Ltd.

Kohinoor Spinning Mills Ltd.

Rupali Polyester 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 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 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

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)

23.81%

EBIT Growth (5y)

36.15%

EBIT to Interest (avg)

2.31

Debt to EBITDA (avg)

2.95

Net Debt to Equity (avg)

0.65

Sales to Capital Employed (avg)

1.11

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

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.45% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.59 times

OPERATING PROFIT(Q)

Highest at PKR 286.66 MM

OPERATING PROFIT MARGIN(Q)

Highest at 14.3 %

PRE-TAX PROFIT(Q)

Highest at PKR 128.65 MM

NET PROFIT(Q)

Highest at PKR 114.89 MM

EPS(Q)

Highest at PKR 5.52

-2What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 75.57 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.27 times

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

Operating Profit

Highest at PKR 286.66 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PKR MM)

Operating Profit Margin

Highest at 14.3 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at PKR 128.65 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 114.89 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

EPS

Highest at PKR 5.52

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PKR)

Inventory Turnover Ratio

Highest at 4.59 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -5.45% (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 42.62 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 Kohat Textile Mills Ltd.

Debt-Equity Ratio

Highest at 75.57 %

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

Debtors Turnover Ratio

Lowest at 4.27 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio