ScoreWhy is Meezan Bank Ltd. ?
1
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 10.45% signifying inadequate buffers against its risk based assets
- Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 10.45% signifying inadequate buffers against its risk based assets
- A high ratio signifies bank has weaker due diligence systems when giving out loans
2
Healthy long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 45.80%
3
Flat results in Mar 25
- NII(Q) Lowest at PKR 61,839.65 MM
- NET SALES(Q) Lowest at PKR 107,677.1
- OPERATING PROFIT(Q) Lowest at PKR 48,934.95
4
With ROE of 40.7, it has a very attractive valuation with a 2.2 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 0%, its profits have risen by 20% ; the PEG ratio of the company is 0.3
- At the current price, the company has a high dividend yield of 9
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Meezan Bank Ltd. should be less than 10%
- Overall Portfolio exposure to Major Banks should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Major Banks)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Meezan Bank Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Meezan Bank Ltd.
31.47%
1.13
32.86%
Pakistan KSE 100 Share
26.26%
2.81
22.77%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
31.50%
EBIT Growth (5y)
42.12%
EBIT to Interest (avg)
0
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
0
Dividend Payout Ratio
55.48%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
3.02
EV to EBIT
5.01
EV to EBITDA
4.79
EV to Capital Employed
2.06
EV to Sales
2.15
PEG Ratio
0.40
Dividend Yield
4.63%
ROCE (Latest)
41.07%
ROE (Latest)
38.09%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 59.11%
CASH AND EQV(HY)
Highest at PKR 610,259.65 MM
-3What is not working for the Company
OPERATING PROFIT MARGIN(Q)
Lowest at 43.73 %
NET PROFIT(Q)
Lowest at PKR 21,390.88 MM
EPS(Q)
Lowest at PKR 11.79
Here's what is working for Meezan Bank Ltd.
Cash and Eqv
Highest at PKR 610,259.65 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Dividend Payout Ratio
Highest at 59.11%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for Meezan Bank Ltd.
Operating Profit Margin
Lowest at 43.73 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Net Profit
Lowest at PKR 21,390.88 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (PKR MM)
EPS
Lowest at PKR 11.79
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (PKR)
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