OLP Financial Services Pakistan Ltd. (OLPL) 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

First Habib Modaraba

First IBL Modaraba

OLP Financial Services Pakistan Ltd.

OLP Modaraba

Allied Rental Modaraba

Why is OLP Financial Services Pakistan Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 29,187.13%

Poor long term growth as Net Sales has grown by an annual rate of 7.98% and Operating profit at 15.29%

Poor long term growth as Net Sales has grown by an annual rate of 7.98% and Operating profit at 15.29%

Flat results in Mar 25

OPERATING CASH FLOW(Y) Lowest at PKR -1,834.57 MM
NET SALES(Q) Lowest at PKR 1,925.16

With ROE of 14.1, it has a very attractive valuation with a 0.6 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 risen by 5.6% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 5.5

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to OLP Financial Services Pakistan Ltd. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

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

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

Is OLP Financial Services Pakistan Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

OLP Financial Services Pakistan Ltd.

-100.0%

1.57

26.24%

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)

6.28%

EBIT Growth (5y)

13.95%

EBIT to Interest (avg)

1.56

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

962.56

Tax Ratio

40.67%

Dividend Payout Ratio

74.04%

Pledged Shares

Institutional Holding

ROCE (avg)

362,739.51%

ROE (avg)

29,187.13%

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

0.81

EV to EBIT

0.94

EV to EBITDA

0.86

EV to Capital Employed

0.74

EV to Sales

0.67

PEG Ratio

Dividend Yield

10.85%

ROCE (Latest)

78.07%

ROE (Latest)

13.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

Mildly Bearish

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

INTEREST COVERAGE RATIO(Q)

Highest at 184.3

RAW MATERIAL COST(Y)

Fallen by -1.61% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 107.31 %

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR -3,716.17 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

NET SALES(9M)

At PKR 5,715.15 MM has Grown at -25.08%

ROCE(HY)

Lowest at 11.85%

CASH AND EQV(HY)

Lowest at PKR 6,022.37 MM

DIVIDEND PER SHARE(HY)

Lowest at PKR 0.28

Here's what is working for OLP Financial Services Pakistan Ltd.

Interest Coverage Ratio

Highest at 184.3

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 107.31 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -1.61% (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 OLP Financial Services Pakistan Ltd.

Operating Cash Flow

Lowest at PKR -3,716.17 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

At PKR 5,715.15 MM has Grown at -25.08%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)

Dividend Payout Ratio

Lowest at 0% and Fallen

In each year in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Cash and Eqv

Lowest at PKR 6,022.37 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend per share

Lowest at PKR 0.28

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (PKR)