Why is Pakistan Paper Products Ltd. ?
1
Poor Management Efficiency with a low ROCE of 12.86%
- The company has been able to generate a Return on Capital Employed (avg) of 12.86% signifying low profitability per unit of total capital (equity and debt)
2
Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.24 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.24 times
- The company has been able to generate a Return on Equity (avg) of 7.87% signifying low profitability per unit of shareholders funds
3
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 12.86%
- OPERATING CASH FLOW(Y) Highest at PKR 198.94 MM
- INTEREST COVERAGE RATIO(Q) Highest at 898.49
- NET SALES(Q) Highest at PKR 535.56
4
With ROE of 7.7, it has a expensive valuation with a 0.6 Price to Book Value
- Over the past year, while the stock has generated a return of 0%, its profits have fallen by -22.5%
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 Media & Entertainment)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Pakistan Paper Products Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Pakistan Paper Products Ltd.
115.38%
2.26
56.87%
Pakistan KSE 100 Share
60.28%
2.81
22.77%
Quality key factors
Factor
Value
Sales Growth (5y)
12.66%
EBIT Growth (5y)
28.24%
EBIT to Interest (avg)
4.76
Debt to EBITDA (avg)
1.24
Net Debt to Equity (avg)
0.14
Sales to Capital Employed (avg)
1.09
Tax Ratio
32.88%
Dividend Payout Ratio
32.67%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
12.86%
ROE (avg)
7.87%
Valuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
0.69
EV to EBIT
6.50
EV to EBITDA
5.25
EV to Capital Employed
0.72
EV to Sales
0.80
PEG Ratio
NA
Dividend Yield
5.96%
ROCE (Latest)
11.08%
ROE (Latest)
6.99%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at PKR 198.94 MM
INTEREST COVERAGE RATIO(Q)
Highest at 898.49
NET SALES(Q)
Highest at PKR 535.56 MM
NET PROFIT(Q)
Highest at PKR 58.18 MM
EPS(Q)
Highest at PKR 7.27
-1What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 28.31% (YoY
Here's what is working for Pakistan Paper Products Ltd.
Operating Cash Flow
Highest at PKR 198.94 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (PKR MM)
Interest Coverage Ratio
Highest at 898.49
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at PKR 535.56 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (PKR MM)
Net Profit
Highest at PKR 58.18 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (PKR MM)
EPS
Highest at PKR 7.27
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (PKR)
Depreciation
Highest at PKR 13.47 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (PKR MM)
Here's what is not working for Pakistan Paper Products Ltd.
Raw Material Cost
Grown by 28.31% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






