Roshan Packages Ltd. (RPL) 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

TRG Pakistan Ltd.

First Treet Manufacturing Modaraba

Packages Ltd.

Merit Packaging Ltd.

Roshan Packages Ltd.

Why is Roshan Packages Ltd. ?

Poor Management Efficiency with a low ROCE of 4.97%

The company has been able to generate a Return on Capital Employed (avg) of 4.97% 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 1.09 times

Poor long term growth as Operating profit has grown by an annual rate -0.25% of over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.09 times
The company has been able to generate a Return on Equity (avg) of 1.89% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -0.25% of over the last 5 years

Flat results in Mar 25

NET PROFIT(HY) At PKR 8.01 MM has Grown at -50.75%
CASH AND EQV(HY) Lowest at PKR 978.39 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 4.8%

With ROE of 0.7, it has a expensive valuation with a 0.3 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 fallen by -8.8%
At the current price, the company has a high dividend yield of 5.6

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 Miscellaneous)

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

Is Roshan Packages Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Roshan Packages Ltd.

14.25%

0.52

48.78%

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)

11.63%

EBIT Growth (5y)

-6.65%

EBIT to Interest (avg)

2.15

Debt to EBITDA (avg)

1.09

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

1.02

Tax Ratio

75.13%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.97%

ROE (avg)

1.89%

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

0.30

EV to EBIT

12.27

EV to EBITDA

7.24

EV to Capital Employed

0.39

EV to Sales

0.40

PEG Ratio

0.03

Dividend Yield

5.33%

ROCE (Latest)

3.14%

ROE (Latest)

1.25%

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

No Trend

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -8.12% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 5.75 times

-19What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR -412.29 MM

PRE-TAX PROFIT(Q)

At PKR -9.68 MM has Fallen at -141.21%

NET PROFIT(Q)

At PKR -32.02 MM has Fallen at -559.5%

DEBT-EQUITY RATIO (HY)

Highest at 16.66 %

INTEREST(Q)

Highest at PKR 63.48 MM

Here's what is working for Roshan Packages Ltd.

Inventory Turnover Ratio

Highest at 5.75 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -8.12% (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 Roshan Packages Ltd.

Pre-Tax Profit

At PKR -9.68 MM has Fallen at -141.21%

over average net sales of the previous four periods of PKR 23.49 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (PKR MM)

Net Profit

At PKR -32.02 MM has Fallen at -559.5%

over average net sales of the previous four periods of PKR 6.97 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (PKR MM)

Operating Cash Flow

Lowest at PKR -412.29 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)

Interest

Highest at PKR 63.48 MM

in the last five periods and Increased by 10.05% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Debt-Equity Ratio

Highest at 16.66 %

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