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Netsol Technologies Ltd.

  • Market Cap: Small Cap
  • Industry: Computers - Software & Consulting
  • ISIN: PK0084201018
PKR
131.66
-5.17 (-3.78%)

Jun 13

KAR

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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
Systems Ltd.
Netsol Technologies Ltd.
Octopus Digital Ltd.
Why is Netsol Technologies Ltd. ?
1
Poor Management Efficiency with a low ROE of 8.22%
  • The company has been able to generate a Return on Equity (avg) of 8.22% signifying low profitability per unit of shareholders funds
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 5.01
3
Low Debt Company with Strong Long Term Fundamental Strength
4
Flat results in Mar 25
  • NET PROFIT(HY) At PKR 78.14 MM has Grown at -84.68%
  • RAW MATERIAL COST(Y) Grown by 10.4% (YoY)
  • DEBTORS TURNOVER RATIO(HY) Lowest at 1.03%
5
With ROE of 7.2, it has a expensive valuation with a 1.3 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 44.7% ; the PEG ratio of the company is 0.4
stock-recommendationReal-Time Research Report
Verdict Report
How much should you hold?
  1. Overall Portfolio exposure to Netsol Technologies Ltd. should be less than 10%
  2. Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Netsol Technologies Ltd. for you?

Medium Risk, Low Return

Absolute
Risk Adjusted
Volatility
Netsol Technologies Ltd.
-100.0%
0.06
41.37%
Pakistan KSE 100 Share
60.28%
2.81
22.77%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors
Factor
Value
Sales Growth (5y)
18.48%
EBIT Growth (5y)
40.69%
EBIT to Interest (avg)
5.01
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.18
Sales to Capital Employed (avg)
0.78
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
9.17%
ROE (avg)
8.22%
stock-recommendationValuation
Valuation Scorecard stock-summary
stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
1.21
EV to EBIT
7.79
EV to EBITDA
6.40
EV to Capital Employed
1.26
EV to Sales
1.15
PEG Ratio
0.54
Dividend Yield
NA
ROCE (Latest)
16.12%
ROE (Latest)
12.25%
stock-recommendationTechnicals
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Sideways
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Bullish
Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend
Financial Trend Scorecard stock-summary
stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company
OPERATING CASH FLOW(Y)

Highest at PKR 2,012.69 MM

INTEREST COVERAGE RATIO(Q)

Highest at 729.61

CASH AND EQV(HY)

Highest at PKR 8,529.94 MM

NET SALES(Q)

Highest at PKR 2,399.99 MM

-9What is not working for the Company
NET PROFIT(HY)

At PKR 78.14 MM has Grown at -84.68%

RAW MATERIAL COST(Y)

Grown by 10.4% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.03%

Here's what is working for Netsol Technologies Ltd.
Operating Cash Flow
Highest at PKR 2,012.69 MM and Grown
In each year in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (PKR MM)

Interest Coverage Ratio
Highest at 729.61
in the last five periods
MOJO Watch
The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales
Highest at PKR 2,399.99 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (PKR MM)

Cash and Eqv
Highest at PKR 8,529.94 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Netsol Technologies Ltd.
Net Profit
At PKR 78.14 MM has Grown at -84.68%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (PKR MM)

Debtors Turnover Ratio
Lowest at 1.03%
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost
Grown by 10.4% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

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