Sapphire Fibres Ltd. (SFL) 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

Sapphire Fibres Ltd.

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Sapphire Textile Mills Ltd.

Ibrahim Fibres Ltd.

Mahmood Textile Mills Ltd.

Nishat Mills Ltd.

Gul Ahmed Textile Mills Ltd.

Lotte Chemical Pakistan Ltd.

Gatron Industries Ltd.

Why is Sapphire Fibres Ltd. ?

Poor Management Efficiency with a low ROCE of 12.41%

The company has been able to generate a Return on Capital Employed (avg) of 12.41% 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 12.41% signifying low profitability per unit of total capital (equity and debt)

High Debt company with Weak Long Term Fundamental Strength

ROCE(HY) Lowest at 6.74%
INTEREST COVERAGE RATIO(Q) Lowest at 110
RAW MATERIAL COST(Y) Grown by 51.98% (YoY)

With ROE of 8.1, it has a expensive valuation with a 0.4 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 fallen by -7.6%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sapphire Fibres Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

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

Is Sapphire Fibres Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sapphire Fibres Ltd.

-100.0%

-0.50

45.58%

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)

12.41%

EBIT Growth (5y)

-173.86%

EBIT to Interest (avg)

3.35

Debt to EBITDA (avg)

2.46

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

0.87

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

12.41%

ROE (avg)

15.17%

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

0.34

EV to EBIT

18.90

EV to EBITDA

9.79

EV to Capital Employed

0.39

EV to Sales

0.57

PEG Ratio

Dividend Yield

0.73%

ROCE (Latest)

2.06%

ROE (Latest)

39.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Mildly 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

15What is working for the Company

NET PROFIT(HY)

Higher at PKR 33,734.88 MM

ROCE(HY)

Highest at 49.26%

CASH AND EQV(HY)

Highest at PKR 28,596.59 MM

DEBT-EQUITY RATIO (HY)

Lowest at 11.25 %

-8What is not working for the Company

PRE-TAX PROFIT(Q)

At PKR -422.13 MM has Fallen at -134.58%

RAW MATERIAL COST(Y)

Grown by 71.31% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.69 times

NET SALES(Q)

Fallen at -23.16%

Here's what is working for Sapphire Fibres Ltd.

Net Profit

At PKR 33,734.88 MM has Grown at 1,066.3%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (PKR MM)

Net Profit

Higher at PKR 33,734.88 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (PKR MM)

Cash and Eqv

Highest at PKR 28,596.59 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 11.25 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Sapphire Fibres Ltd.

Pre-Tax Profit

At PKR -422.13 MM has Fallen at -134.58%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (PKR MM)

Net Sales

Fallen at -23.16%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)

Inventory Turnover Ratio

Lowest at 2.69 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 71.31% (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