Rafhan Maize Products Co. Ltd. (RMPL) 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

National Foods Ltd. (Pakistan)

Bunny's Ltd.

Al-Abbas Sugar Mills Ltd.

JDW Sugar Mills Ltd.

Habib Sugar Mills Ltd.

Rafhan Maize Products Co. Ltd.

Clover Pakistan Ltd.

Ismail Industries Ltd.

Baba Farid Sugar Mills Ltd.

Shakarganj Ltd.

Why is Rafhan Maize Products Co. Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 31.06%

Company has very low debt and has enough cash to service the debt requirements

With ROE of 26.4, it has a attractive valuation with a 3.1 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 24.1% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 4.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Rafhan Maize Products Co. Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Rafhan Maize Products Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Rafhan Maize Products Co. Ltd.

27.51%

1.26

23.26%

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)

15.93%

EBIT Growth (5y)

6.84%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.15

Sales to Capital Employed (avg)

2.16

Tax Ratio

37.39%

Dividend Payout Ratio

46.34%

Pledged Shares

Institutional Holding

ROCE (avg)

68.93%

ROE (avg)

31.06%

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

3.09

EV to EBIT

6.45

EV to EBITDA

6.11

EV to Capital Employed

3.47

EV to Sales

1.16

PEG Ratio

0.63

Dividend Yield

4.16%

ROCE (Latest)

53.79%

ROE (Latest)

26.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

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

1What is working for the Company

CASH AND EQV(HY)

Highest at PKR 21,685.52 MM

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR 4,775.65 MM

ROCE(HY)

Lowest at 25.43%

INTEREST COVERAGE RATIO(Q)

Lowest at 987.52

RAW MATERIAL COST(Y)

Grown by 33.85% (YoY

INTEREST(Q)

Highest at PKR 249.77 MM

OPERATING PROFIT(Q)

Lowest at PKR 2,466.54 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.04 %

PRE-TAX PROFIT(Q)

Lowest at PKR 2,006.55 MM

NET PROFIT(Q)

Lowest at PKR 1,220.98 MM

EPS(Q)

Lowest at PKR 132.48

Here's what is working for Rafhan Maize Products Co. Ltd.

Cash and Eqv

Highest at PKR 21,685.52 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Rafhan Maize Products Co. Ltd.

Interest

At PKR 249.77 MM has Grown at 103.25%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Interest Coverage Ratio

Lowest at 987.52

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at PKR 4,775.65 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)

Interest

Highest at PKR 249.77 MM

in the last five periods and Increased by 103.25% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Operating Profit

Lowest at PKR 2,466.54 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PKR MM)

Operating Profit Margin

Lowest at 13.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at PKR 2,006.55 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PKR MM)

Net Profit

Lowest at PKR 1,220.98 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PKR MM)

EPS

Lowest at PKR 132.48

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (PKR)

Raw Material Cost

Grown by 33.85% (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