Panther Tyres Ltd. () 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

Panther Tyres Ltd.

Service Industries Ltd.

Ghandhara Tyre & Rubber Co. Ltd.

Why is Panther Tyres Ltd. ?

Poor Management Efficiency with a low ROCE of 10.98%

The company has been able to generate a Return on Capital Employed (avg) of 10.98% signifying low profitability per unit of total capital (equity and debt)

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

Poor long term growth as Net Sales has grown by an annual rate of 19.20% and Operating profit at 21.94% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 0 times
The company has been able to generate a Return on Equity (avg) of 6.72% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 19.20% and Operating profit at 21.94% over the last 5 years

Flat results in Mar 25

NET PROFIT(9M) At PKR 336.9 MM has Grown at -38.71%
RAW MATERIAL COST(Y) Grown by 15.65% (YoY)

With ROE of 3.3, it has a expensive valuation with a 1 Price to Book Value

Over the past year, while the stock has generated a return of 0%, its profits have fallen by -71.3%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Panther Tyres Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Panther Tyres Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Panther Tyres Ltd.

5.2%

0.27

39.30%

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)

17.94%

EBIT Growth (5y)

23.55%

EBIT to Interest (avg)

1.76

Debt to EBITDA (avg)

4.43

Net Debt to Equity (avg)

1.41

Sales to Capital Employed (avg)

1.65

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

77.85%

Pledged Shares

Institutional Holding

ROCE (avg)

10.98%

ROE (avg)

6.72%

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

1.24

EV to EBIT

8.65

EV to EBITDA

6.69

EV to Capital Employed

1.11

EV to Sales

0.60

PEG Ratio

Dividend Yield

ROCE (Latest)

12.79%

ROE (Latest)

5.72%

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

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

23What is working for the Company

PRE-TAX PROFIT(Q)

Highest at PKR 452.65 MM

RAW MATERIAL COST(Y)

Fallen by -33.81% (YoY

OPERATING PROFIT(Q)

Highest at PKR 1,073.12 MM

OPERATING PROFIT MARGIN(Q)

Highest at 12.03 %

NET PROFIT(Q)

Highest at PKR 282.56 MM

EPS(Q)

Highest at PKR 1.68

-2What is not working for the Company

INTEREST(Q)

At PKR 337.57 MM has Grown at 23.61%

Here's what is working for Panther Tyres Ltd.

Pre-Tax Profit

At PKR 452.65 MM has Grown at 1,281.24%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (PKR MM)

Pre-Tax Profit

Highest at PKR 452.65 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (PKR MM)

Net Profit

At PKR 282.56 MM has Grown at 314.4%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (PKR MM)

Operating Profit

Highest at PKR 1,073.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PKR MM)

Operating Profit Margin

Highest at 12.03 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at PKR 282.56 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

EPS

Highest at PKR 1.68

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PKR)

Raw Material Cost

Fallen by -33.81% (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 222.91 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 222.91 MM has Grown at 30.48%

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 Panther Tyres Ltd.

Interest

At PKR 337.57 MM has Grown at 23.61%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)