ScoreWhy is Nestlé Pakistan Ltd. ?
1
High Management Efficiency with a high ROE of 117.38%
2
Poor long term growth as Operating profit has grown by an annual rate 13.95% of over the last 5 years
3
Positive results in Mar 25
- OPERATING CASH FLOW(Y) Highest at PKR 32,607.12 MM
- DEBT-EQUITY RATIO (HY) Lowest at -1.66 %
- INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
4
With ROE of 63, it has a expensive valuation with a 13.5 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 fallen by -6.6%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Nestlé Pakistan Ltd. should be less than 10%
- Overall Portfolio exposure to FMCG should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nestlé Pakistan Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Nestlé Pakistan Ltd.
-100.0%
0.00
19.84%
Pakistan KSE 100 Share
60.28%
2.81
22.77%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.62%
EBIT Growth (5y)
14.81%
EBIT to Interest (avg)
11.82
Debt to EBITDA (avg)
0.56
Net Debt to Equity (avg)
-0.08
Sales to Capital Employed (avg)
7.59
Tax Ratio
41.50%
Dividend Payout Ratio
50.84%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
100.65%
ROE (avg)
117.38%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
22
Industry P/E
Price to Book Value
17.49
EV to EBIT
11.44
EV to EBITDA
10.42
EV to Capital Employed
26.36
EV to Sales
1.87
PEG Ratio
0.83
Dividend Yield
3.40%
ROCE (Latest)
230.39%
ROE (Latest)
78.37%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
OPERATING CASH FLOW(Y)
Highest at PKR 31,502.98 MM
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by -6.48% (YoY
CASH AND EQV(HY)
Highest at PKR 8,829.64 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -3.88 %
DIVIDEND PER SHARE(HY)
Highest at PKR 10.66
PRE-TAX PROFIT(Q)
Highest at PKR 8,775.19 MM
NET PROFIT(Q)
Highest at PKR 5,426.1 MM
EPS(Q)
Highest at PKR 119.65
-4What is not working for the Company
ROCE(HY)
Lowest at 64.39%
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.01%
DEBTORS TURNOVER RATIO(HY)
Lowest at 10.66%
Here's what is working for Nestlé Pakistan Ltd.
Operating Cash Flow
Highest at PKR 31,502.98 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (PKR MM)
Pre-Tax Profit
Highest at PKR 8,775.19 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (PKR MM)
Net Profit
Highest at PKR 5,426.1 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (PKR MM)
EPS
Highest at PKR 119.65
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (PKR)
Cash and Eqv
Highest at PKR 8,829.64 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -3.88 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend per share
Highest at PKR 10.66
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (PKR)
Raw Material Cost
Fallen by -6.48% (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 Nestlé Pakistan Ltd.
Inventory Turnover Ratio
Lowest at 3.01%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 10.66%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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