Packages Ltd. (PKGS) 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

Security Papers Ltd.

First Treet Manufacturing Modaraba

Packages Ltd.

Merit Packaging Ltd.

Century Paper & Board Mills Ltd.

Why is Packages Ltd. ?

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

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 404,101.72% signifying low profitability per unit of total capital (equity and debt)

Flat results in Mar 25

NET PROFIT(Q) At PKR -296.41 MM has Fallen at -208.2%
ROCE(HY) Lowest at -4.7%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 0%, its profits have fallen by -117%

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 Paper, Forest & Jute Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Packages Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Packages Ltd.

4.09%

0.24

36.90%

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)

24.60%

EBIT Growth (5y)

18.63%

EBIT to Interest (avg)

2.35

Debt to EBITDA (avg)

2.67

Net Debt to Equity (avg)

1.62

Sales to Capital Employed (avg)

0.96

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

404,101.72%

ROE (avg)

93,329.20%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.01

EV to EBIT

10.98

EV to EBITDA

8.02

EV to Capital Employed

1.00

EV to Sales

0.99

PEG Ratio

Dividend Yield

ROCE (Latest)

9.13%

ROE (Latest)

-4.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly 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

12What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 249.62

RAW MATERIAL COST(Y)

Fallen by -6.83% (YoY

CASH AND EQV(HY)

Highest at PKR 14,768.49 MM

NET SALES(Q)

Highest at PKR 51,875.14 MM

OPERATING PROFIT(Q)

Highest at PKR 8,882.75 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.12 %

PRE-TAX PROFIT(Q)

Highest at PKR 3,177.27 MM

EPS(Q)

Highest at PKR 10.7

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR -1,550.74 MM

DEBT-EQUITY RATIO (HY)

Highest at 178.55 %

NET PROFIT(Q)

At PKR 1,053.9 MM has Fallen at -95.62%

Here's what is working for Packages Ltd.

Pre-Tax Profit

At PKR 3,177.27 MM has Grown at 7,212.45%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (PKR MM)

Interest Coverage Ratio

Highest at 249.62

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 51,875.14 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (PKR MM)

Operating Profit

Highest at PKR 8,882.75 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PKR MM)

Operating Profit Margin

Highest at 17.12 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at PKR 3,177.27 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

EPS

Highest at PKR 10.7

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PKR)

Cash and Eqv

Highest at PKR 14,768.49 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -6.83% (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 2,886.41 MM

in the last five periods

MOJO Watch

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

Depreciation (PKR MM)

Depreciation

At PKR 2,886.41 MM has Grown at 55.66%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (PKR MM)

Here's what is not working for Packages Ltd.

Operating Cash Flow

Lowest at PKR -1,550.74 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 Profit

At PKR 1,053.9 MM has Fallen at -95.62%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (PKR MM)

Debt-Equity Ratio

Highest at 178.55 % and Grown

In each half year 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