Sanghar Sugar Mills Ltd. (SANSM) 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

Al-Noor Sugar Mills Ltd.

Noon Sugar Mills Ltd.

Sanghar Sugar Mills Ltd.

Imperial Ltd. (Pakistan)

Faran Sugar Mills Ltd.

Jauharabad Sugar Mills Ltd.

Shahtaj Sugar Mills Ltd.

Tariq Corp. Ltd.

Sakrand Sugar Mills Ltd.

Dewan Sugar Mills Ltd.

Haseeb Waqas Sugar Mills Ltd.

Why is Sanghar Sugar Mills Ltd. ?

With a growth in Net Sales of 143.93%, the company declared Very Positive results in Mar 25

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at PKR 3.5 MM
NET PROFIT(HY) Higher at PKR 44.15 MM
ROCE(HY) Highest at 6.83%

With ROE of 6.6, it has a attractive valuation with a 0.3 Price to Book Value

Over the past year, while the stock has generated a return of 0%, its profits have risen by 615.9% ; the PEG ratio of the company is 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sanghar Sugar Mills Ltd. should be less than 10%
Overall Portfolio exposure to Other Agricultural Products should be less than 30%

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

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

Is Sanghar Sugar Mills Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sanghar Sugar Mills Ltd.

116.4%

1.56

75.77%

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)

18.86%

EBIT Growth (5y)

80.47%

EBIT to Interest (avg)

0.96

Debt to EBITDA (avg)

9.59

Net Debt to Equity (avg)

0.80

Sales to Capital Employed (avg)

1.72

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.82%

ROE (avg)

4.20%

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

0.37

EV to EBIT

5.98

EV to EBITDA

3.75

EV to Capital Employed

0.59

EV to Sales

0.27

PEG Ratio

0.09

Dividend Yield

ROCE (Latest)

9.85%

ROE (Latest)

4.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

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

12What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -117.41% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.77 times

OPERATING PROFIT(Q)

Highest at PKR 262.49 MM

OPERATING PROFIT MARGIN(Q)

Highest at 20.43 %

PRE-TAX PROFIT(Q)

At PKR 169.54 MM has Grown at 107.63%

NET PROFIT(Q)

Highest at PKR 127.38 MM

EPS(Q)

Highest at PKR 10.66

-8What is not working for the Company

NET SALES(Q)

At PKR 1,285.03 MM has Fallen at -45.16%

OPERATING CASH FLOW(Y)

Lowest at PKR -271.5 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 16.7 times

Here's what is working for Sanghar Sugar Mills Ltd.

Operating Profit

Highest at PKR 262.49 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PKR MM)

Operating Profit Margin

Highest at 20.43 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At PKR 169.54 MM has Grown at 107.63%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Net Profit

Highest at PKR 127.38 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

EPS

Highest at PKR 10.66

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PKR)

Inventory Turnover Ratio

Highest at 2.77 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 -117.41% (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 65.7 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 65.7 MM has Grown at 44.99%

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 Sanghar Sugar Mills Ltd.

Net Sales

At PKR 1,285.03 MM has Fallen at -45.16%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (PKR MM)

Operating Cash Flow

Lowest at PKR -271.5 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)

Debtors Turnover Ratio

Lowest at 16.7 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio