Mughal Iron & Steel Industries Ltd. (MUGHAL) 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

Mughal Iron & Steel Industries Ltd.

International Industries Ltd.

Crescent Steel & Allied Products Ltd.

Siddiqsons Tin Plate Ltd.

Aisha Steel Mills Ltd.

Ittefaq Iron Industries Ltd.

Agha Steel Industries Ltd.

Amreli Steel Ltd.

Dost Steel Ltd.

Why is Mughal Iron & Steel Industries Ltd. ?

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 15.89% signifying low profitability per unit of total capital (equity and debt)

The company has declared Negative results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at PKR -2,997.9 MM
NET PROFIT(HY) At PKR 437.15 MM has Grown at -50.12%
ROCE(HY) Lowest at 3.51%

With ROE of 3.4, it has a expensive valuation with a 1.1 Price to Book Value

The stock is trading at a fair value 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 -58.3%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mughal Iron & Steel Industries Ltd. should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

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

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

Is Mughal Iron & Steel Industries Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mughal Iron & Steel Industries Ltd.

-100.0%

-0.22

44.06%

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)

25.27%

EBIT Growth (5y)

33.85%

EBIT to Interest (avg)

2.47

Debt to EBITDA (avg)

3.22

Net Debt to Equity (avg)

1.08

Sales to Capital Employed (avg)

1.48

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

15.89%

ROE (avg)

14.62%

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

1.07

EV to EBIT

7.50

EV to EBITDA

6.96

EV to Capital Employed

1.04

EV to Sales

0.63

PEG Ratio

Dividend Yield

ROCE (Latest)

13.83%

ROE (Latest)

2.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

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

7What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 3.37%

PRE-TAX PROFIT(Q)

At PKR 489.85 MM has Grown at 193.25%

RAW MATERIAL COST(Y)

Fallen by -34.52% (YoY

CASH AND EQV(HY)

Highest at PKR 7,960.73 MM

NET PROFIT(Q)

At PKR 226.85 MM has Grown at 120.36%

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR -2,997.9 MM

NET PROFIT(HY)

At PKR 437.15 MM has Grown at -50.12%

ROCE(HY)

Lowest at 3.51%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.47%

NET SALES(Q)

Lowest at PKR 19,342.72 MM

Here's what is working for Mughal Iron & Steel Industries Ltd.

Pre-Tax Profit

At PKR 489.85 MM has Grown at 193.25%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (PKR MM)

Inventory Turnover Ratio

Highest at 3.37% and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Profit

At PKR 226.85 MM has Grown at 120.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

Cash and Eqv

Highest at PKR 7,960.73 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -34.52% (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

Here's what is not working for Mughal Iron & Steel Industries Ltd.

Operating Cash Flow

Lowest at PKR -2,997.9 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)

Net Sales

Lowest at PKR 19,342.72 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)

Debtors Turnover Ratio

Lowest at 5.47%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio