Pak Elektron Ltd. (PAEL) 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

Pak Elektron Ltd.

Pakistan Cables Ltd.

First Treet Manufacturing Modaraba

Siemens Pakistan Engineering Co. Ltd.

Atlas Battery Ltd.

Pakistan Engineering Co. Ltd.

Johnson & Phillips (Pakistan) Ltd.

Why is Pak Elektron Ltd. ?

Poor Management Efficiency with a low ROCE of 10.14%

The company has been able to generate a Return on Capital Employed (avg) of 10.14% 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 2.73 times

Poor long term growth as Operating profit has grown by an annual rate 23.59% of over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.73 times
The company has been able to generate a Return on Equity (avg) of 3.94% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 23.59% of over the last 5 years

Flat results in Mar 25

OPERATING CASH FLOW(Y) Lowest at PKR -2,700.35 MM
OPERATING PROFIT MARGIN(Q) Lowest at 15 %
DEBT-EQUITY RATIO (HY) Highest at 46.55 %

With ROE of 5.8, it has a attractive valuation with a 0.9 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 48.9% ; the PEG ratio of the company is 0.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Pak Elektron Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Pak Elektron Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Pak Elektron Ltd.

-100.0%

1.61

49.33%

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)

16.60%

EBIT Growth (5y)

32.37%

EBIT to Interest (avg)

1.95

Debt to EBITDA (avg)

2.73

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

0.81

Tax Ratio

39.16%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.21%

ROCE (avg)

10.14%

ROE (avg)

3.94%

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

1.03

EV to EBIT

7.39

EV to EBITDA

6.37

EV to Capital Employed

1.02

EV to Sales

1.07

PEG Ratio

0.28

Dividend Yield

ROCE (Latest)

13.82%

ROE (Latest)

7.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

10What is working for the Company

ROCE(HY)

Highest at 7.74%

INVENTORY TURNOVER RATIO(HY)

Highest at 2.83 times

RAW MATERIAL COST(Y)

Fallen by -6.8% (YoY

NET PROFIT(9M)

Higher at PKR 3,051.2 MM

CASH AND EQV(HY)

Highest at PKR 2,222.42 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.47 times

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR -311.12 MM

NET SALES(Q)

At PKR 11,272.25 MM has Fallen at -22.99%

Here's what is working for Pak Elektron Ltd.

Inventory Turnover Ratio

Highest at 2.83 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Profit

At PKR 3,051.2 MM has Grown at 63.82%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

Cash and Eqv

Highest at PKR 2,222.42 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 3.47 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Profit

Higher at PKR 3,051.2 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (PKR MM)

Raw Material Cost

Fallen by -6.8% (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 Pak Elektron Ltd.

Operating Cash Flow

Lowest at PKR -311.12 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 11,272.25 MM has Fallen at -22.99%

over average net sales of the previous four periods of PKR 14,637.32 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (PKR MM)