Premium Textile Mills Ltd. (PRET) 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

Azgard Nine Ltd.

Suraj Cotton Mills Ltd.

Pakistan Synthetics Ltd.

JK Spinning Mills Ltd.

Blessed Textiles Ltd.

Gadoon Textile Mills Ltd.

Faisal Spinning Mills Ltd.

Nishat Chunian Ltd.

Premium Textile Mills Ltd.

Din Textile Mills Ltd.

Fazal Cloth Mills Ltd.

Why is Premium Textile Mills Ltd. ?

Poor Management Efficiency with a low ROCE of 14.62%

The company has been able to generate a Return on Capital Employed (avg) of 14.62% signifying low profitability per unit of total capital (equity and debt)

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 14.62% signifying low profitability per unit of total capital (equity and debt)

Flat results in Mar 25

NET PROFIT(Q) At PKR 1.22 MM has Fallen at -94.85%
OPERATING CASH FLOW(Y) Lowest at PKR -2,701.51 MM
DEBT-EQUITY RATIO (HY) Highest at 209 %

With ROE of 3.5, it has a attractive valuation with a 0.3 Price to Book Value

The stock is trading at a fair value 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 192.6% ; the PEG ratio of the company is 0

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 Garments & Apparels)

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

Is Premium Textile Mills Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Premium Textile Mills Ltd.

-100.0%

0.68

51.14%

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)

25.26%

EBIT Growth (5y)

18.49%

EBIT to Interest (avg)

2.52

Debt to EBITDA (avg)

3.93

Net Debt to Equity (avg)

2.09

Sales to Capital Employed (avg)

1.06

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

6.46%

Pledged Shares

Institutional Holding

ROCE (avg)

14.62%

ROE (avg)

19.75%

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

0.33

EV to EBIT

8.11

EV to EBITDA

4.98

EV to Capital Employed

0.77

EV to Sales

0.67

PEG Ratio

0.11

Dividend Yield

0.43%

ROCE (Latest)

9.46%

ROE (Latest)

2.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Bearish

OBV

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

NET PROFIT(HY)

Higher at PKR 252.88 MM

INTEREST COVERAGE RATIO(Q)

Highest at 175.91

INVENTORY TURNOVER RATIO(HY)

Highest at 3.09%

PRE-TAX PROFIT(Q)

At PKR 1.22 MM has Grown at 102.25%

-8What is not working for the Company

NET PROFIT(Q)

At PKR 1.22 MM has Fallen at -94.85%

OPERATING CASH FLOW(Y)

Lowest at PKR -2,701.51 MM

DEBT-EQUITY RATIO (HY)

Highest at 209 %

RAW MATERIAL COST(Y)

Grown by 6.81% (YoY

Here's what is working for Premium Textile Mills Ltd.

Interest Coverage Ratio

Highest at 175.91

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At PKR 1.22 MM has Grown at 102.25%

over average net sales of the previous four periods of PKR -54.16 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Inventory Turnover Ratio

Highest at 3.09%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Premium Textile Mills Ltd.

Net Profit

At PKR 1.22 MM has Fallen at -94.85%

over average net sales of the previous four periods of PKR 23.63 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (PKR MM)

Debt-Equity Ratio

Highest at 209 % 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

Operating Cash Flow

Lowest at PKR -2,701.51 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)

Raw Material Cost

Grown by 6.81% (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