Nishat Mills Ltd. (NML) 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

Dawood Lawrencepur Ltd.

Sapphire Fibres Ltd.

Indus Dyeing & Manufacturing Co. Ltd.

Sapphire Textile Mills Ltd.

Mahmood Textile Mills Ltd.

Feroze1888 Mills Ltd.

Gul Ahmed Textile Mills Ltd.

Nishat Mills Ltd.

Ibrahim Fibres Ltd.

Lotte Chemical Pakistan Ltd.

Gatron Industries Ltd.

Why is Nishat Mills Ltd. ?

Poor Management Efficiency with a low ROCE of 7.73%

The company has been able to generate a Return on Capital Employed (avg) of 7.73% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.00 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.00 times
The company has been able to generate a Return on Capital Employed (avg) of 7.73% signifying low profitability per unit of total capital (equity and debt)

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 7.73%

Negative results in Mar 25

NET PROFIT(HY) At PKR -2,484.27 MM has Grown at -196.17%
ROCE(HY) Lowest at 1.14%
NET SALES(Q) Lowest at PKR 51,291.43

With ROE of 0.9, it has a expensive valuation with a 0.3 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 -84.3%

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 Mills Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Nishat Mills Ltd.

66.88%

1.48

43.17%

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)

18.22%

EBIT Growth (5y)

2.01%

EBIT to Interest (avg)

3.33

Debt to EBITDA (avg)

3.00

Net Debt to Equity (avg)

0.52

Sales to Capital Employed (avg)

0.93

Tax Ratio

59.77%

Dividend Payout Ratio

13.78%

Pledged Shares

Institutional Holding

ROCE (avg)

7.73%

ROE (avg)

8.37%

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

0.34

EV to EBIT

11.31

EV to EBITDA

7.05

EV to Capital Employed

0.55

EV to Sales

0.60

PEG Ratio

Dividend Yield

3.26%

ROCE (Latest)

4.84%

ROE (Latest)

3.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

Mildly 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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.26% (YoY

CASH AND EQV(HY)

Highest at PKR 34,633.24 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.84%

PRE-TAX PROFIT(Q)

At PKR 1,568.23 MM has Grown at 104.54%

-14What is not working for the Company

NET PROFIT(HY)

At PKR -2,484.27 MM has Grown at -196.17%

ROCE(HY)

Lowest at 1.14%

NET SALES(Q)

Lowest at PKR 51,291.43 MM

DEBT-EQUITY RATIO (HY)

Highest at 52.32 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.44%

Here's what is working for Nishat Mills Ltd.

Pre-Tax Profit

At PKR 1,568.23 MM has Grown at 104.54%

over average net sales of the previous four periods of PKR 766.71 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Cash and Eqv

Highest at PKR 34,633.24 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 4.84%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -2.26% (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

Depreciation

Highest at PKR 1,548.31 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (PKR MM)

Here's what is not working for Nishat Mills Ltd.

Net Profit

At PKR -2,484.27 MM has Grown at -196.17%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (PKR MM)

Net Sales

Lowest at PKR 51,291.43 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (PKR MM)

Debt-Equity Ratio

Highest at 52.32 %

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

Inventory Turnover Ratio

Lowest at 2.44%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio