Mahmood Textile Mills Ltd. (MEHT) 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.

Sapphire Fibres Ltd.

Indus Dyeing & Manufacturing Co. Ltd.

Sapphire Textile Mills Ltd.

Mahmood Textile Mills Ltd.

Feroze1888 Mills Ltd.

Gul Ahmed Textile Mills Ltd.

Nishat Mills Ltd.

Ibrahim Fibres Ltd.

Lotte Chemical Pakistan Ltd.

Gatron Industries Ltd.

Why is Mahmood Textile Mills Ltd. ?

Poor Management Efficiency with a low ROCE of 11.83%

The company has been able to generate a Return on Capital Employed (avg) of 11.83% 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 11.83% signifying low profitability per unit of total capital (equity and debt)

Healthy long term growth as Operating profit has grown by an annual rate 35.87%

Positive results in Mar 25

PRE-TAX PROFIT(Q) At PKR 187.9 has Grown at 360.64%
NET PROFIT(Q) At PKR 212.36 MM has Grown at 360.97%
RAW MATERIAL COST(Y) Fallen by -58.76% (YoY)

With ROE of 3.4, it has a expensive valuation with a 0.5 Price to Book Value

The stock is trading at a premium 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 -51.1%

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 Mahmood Textile Mills Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mahmood Textile Mills Ltd.

-100.0%

-0.74

55.12%

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)

19.55%

EBIT Growth (5y)

37.83%

EBIT to Interest (avg)

1.69

Debt to EBITDA (avg)

4.65

Net Debt to Equity (avg)

1.71

Sales to Capital Employed (avg)

1.34

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

11.83%

ROE (avg)

9.76%

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

0.49

EV to EBIT

8.17

EV to EBITDA

5.69

EV to Capital Employed

0.80

EV to Sales

0.67

PEG Ratio

0.03

Dividend Yield

ROCE (Latest)

9.82%

ROE (Latest)

5.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

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

16What is working for the Company

PRE-TAX PROFIT(Q)

At PKR 187.9 MM has Grown at 360.64%

NET PROFIT(Q)

At PKR 212.36 MM has Grown at 360.97%

RAW MATERIAL COST(Y)

Fallen by -58.76% (YoY

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR -2,742.25 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.17%

CASH AND EQV(HY)

Lowest at PKR 195.39 MM

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

Pre-Tax Profit

At PKR 187.9 MM has Grown at 360.64%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (PKR MM)

Net Profit

At PKR 212.36 MM has Grown at 360.97%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (PKR MM)

Raw Material Cost

Fallen by -58.76% (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 542.22 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 Mahmood Textile Mills Ltd.

Inventory Turnover Ratio

Lowest at 2.17% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Cash Flow

Lowest at PKR -2,742.25 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)

Cash and Eqv

Lowest at PKR 195.39 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents