Nishat Chunian Ltd. (NCL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Reliance Cotton Spinning Mills Ltd.

Sapphire Fibres Ltd.

Dawood Lawrencepur Ltd.

Indus Dyeing & Manufacturing Co. Ltd.

Sapphire Textile Mills Ltd.

Mahmood Textile Mills Ltd.

Gadoon Textile Mills Ltd.

Nishat Mills Ltd.

Gul Ahmed Textile Mills Ltd.

Gatron Industries Ltd.

Nishat Chunian Ltd.

Why is Nishat Chunian Ltd. ?

Poor Management Efficiency with a low ROCE of 13.85%

The company has been able to generate a Return on Capital Employed (avg) of 13.85% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at 0 times

Poor long term growth as Operating profit has grown by an annual rate -8.79% of over the last 5 years
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 13.85% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Operating profit has grown by an annual rate -8.79% of over the last 5 years

Positive results in Mar 25

NET PROFIT(HY) Higher at PKR 688.06 MM
ROCE(HY) Highest at 6.83%
INTEREST COVERAGE RATIO(Q) Highest at 218.9

With ROE of 6.6, it has a attractive valuation with a 0.4 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 risen by 228.5% ; the PEG ratio of the company is 0

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 Nishat Chunian Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nishat Chunian Ltd.

-100.0%

0.71

42.89%

Pakistan KSE 100 Share

26.26%

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)

10.66%

EBIT Growth (5y)

-6.24%

EBIT to Interest (avg)

2.29

Debt to EBITDA (avg)

3.99

Net Debt to Equity (avg)

1.78

Sales to Capital Employed (avg)

1.30

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

63.91%

Pledged Shares

Institutional Holding

ROCE (avg)

13.85%

ROE (avg)

13.25%

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

10.31

EV to EBITDA

7.72

EV to Capital Employed

0.84

EV to Sales

0.66

PEG Ratio

2.47

Dividend Yield

4.52%

ROCE (Latest)

8.10%

ROE (Latest)

3.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

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

12What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -27.21% (YoY

OPERATING PROFIT(Q)

Highest at PKR 2,155.83 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.4 %

PRE-TAX PROFIT(Q)

Highest at PKR 577.74 MM

NET PROFIT(Q)

Highest at PKR 516.16 MM

EPS(Q)

Highest at PKR 2.15

-3What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR -13,785.48 MM

DEBT-EQUITY RATIO (HY)

Highest at 232.68 %

Here's what is working for Nishat Chunian Ltd.

Pre-Tax Profit

At PKR 577.74 MM has Grown at 651.5%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (PKR MM)

Net Profit

At PKR 516.16 MM has Grown at 1,303.37%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (PKR MM)

Operating Profit

Highest at PKR 2,155.83 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PKR MM)

Operating Profit Margin

Highest at 9.4 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at PKR 577.74 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Net Profit

Highest at PKR 516.16 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

EPS

Highest at PKR 2.15

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PKR)

Raw Material Cost

Fallen by -27.21% (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 Nishat Chunian Ltd.

Operating Cash Flow

Lowest at PKR -13,785.48 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)

Debt-Equity Ratio

Highest at 232.68 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio