Shell Pakistan Ltd. (SHEL) 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

Shell Pakistan Ltd.

Pakistan State Oil Co. Ltd.

Attock Petroleum Ltd.

Pakistan Refinery Ltd.

Attock Refinery Ltd.

Hi-Tech Lubricants Ltd.

Cnergyico PK Ltd

Hascol Petroleum Ltd.

Why is Shell Pakistan Ltd. ?

Strong Long Term Fundamental Strength with a 16.46% CAGR growth in Net Sales

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 6.08
The company has been able to generate a Return on Capital Employed (avg) of 6,494.96% signifying high profitability per unit of total capital (equity and debt)

Negative results in Mar 25

OPERATING CASH FLOW(Y) Lowest at PKR -1,436.3 MM
NET PROFIT(HY) At PKR 3,446.24 MM has Grown at -66.77%
DEBT-EQUITY RATIO (HY) Highest at -15.88 %

With ROE of 16.6, it has a expensive valuation with a 1.6 Price to Book Value

Over the past year, while the stock has generated a return of 0%, its profits have fallen by -82.3%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Shell Pakistan Ltd. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Shell Pakistan Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shell Pakistan Ltd.

-100.0%

0.65

43.24%

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)

21.69%

EBIT Growth (5y)

33.20%

EBIT to Interest (avg)

6.08

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.53

Sales to Capital Employed (avg)

19.34

Tax Ratio

70.18%

Dividend Payout Ratio

32.45%

Pledged Shares

Institutional Holding

ROCE (avg)

6,494.96%

ROE (avg)

32.55%

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

1.77

EV to EBIT

2.21

EV to EBITDA

1.61

EV to Capital Employed

-16.52

EV to Sales

0.04

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

13.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

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

15What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 10.24 times

DIVIDEND PAYOUT RATIO(Y)

Highest at 36.63%

RAW MATERIAL COST(Y)

Fallen by -24.13% (YoY

CASH AND EQV(HY)

Highest at PKR 45,965.24 MM

DIVIDEND PER SHARE(HY)

Highest at PKR 30.47

NET PROFIT(Q)

At PKR 1,752.84 MM has Grown at 115.29%

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Shell Pakistan Ltd.

Inventory Turnover Ratio

Highest at 10.24 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Profit

At PKR 1,752.84 MM has Grown at 115.29%

over average net sales of the previous four periods of PKR 814.19 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

Cash and Eqv

Highest at PKR 45,965.24 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at PKR 30.47

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (PKR)

Dividend Payout Ratio

Highest at 36.63%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -24.13% (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 1,059.61 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (PKR MM)