OLP Modaraba (ORIXM) 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

First IBL Modaraba

First Habib Modaraba

OLP Modaraba

OLP Financial Services Pakistan Ltd.

First Dawood Properties Ltd.

Allied Rental Modaraba

Why is OLP Modaraba ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 12.37%

Poor long term growth as Net Sales has grown by an annual rate of -0.11%

Poor long term growth as Net Sales has grown by an annual rate of -0.11%

Flat results in Mar 25

OPERATING CASH FLOW(Y) Lowest at PKR -1,269.04 MM
DEBT-EQUITY RATIO (HY) Highest at 446.88 %
DEBTORS TURNOVER RATIO(HY) Lowest at 0.37%

With ROE of 14.6, it has a fair valuation with a 0.6 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 21.9% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 11.9

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to OLP Modaraba 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 Modaraba for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

OLP Modaraba

26.82%

0.82

32.87%

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)

-1.80%

EBIT Growth (5y)

9.57%

EBIT to Interest (avg)

1.31

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.69

Tax Ratio

30.01%

Dividend Payout Ratio

65.18%

Pledged Shares

Institutional Holding

ROCE (avg)

160.12%

ROE (avg)

12.37%

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

0.85

EV to EBIT

0.30

EV to EBITDA

0.22

EV to Capital Employed

0.64

EV to Sales

0.18

PEG Ratio

0.73

Dividend Yield

18.20%

ROCE (Latest)

213.74%

ROE (Latest)

13.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

6What is working for the Company

ROCE(HY)

Highest at 14.26%

INTEREST COVERAGE RATIO(Q)

Highest at 195.77

RAW MATERIAL COST(Y)

Fallen by -1.62% (YoY

CASH AND EQV(HY)

Highest at PKR 1,727.12 MM

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR -1,269.04 MM

DEBT-EQUITY RATIO (HY)

Highest at 446.88 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.37%

NET SALES(Q)

Lowest at PKR 454.14 MM

Here's what is working for OLP Modaraba

Interest Coverage Ratio

Highest at 195.77

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Cash and Eqv

Highest at PKR 1,727.12 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.62% (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 Modaraba

Operating Cash Flow

Lowest at PKR -1,269.04 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

Lowest at PKR 454.14 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)

Debt-Equity Ratio

Highest at 446.88 %

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

Debtors Turnover Ratio

Lowest at 0.37%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio