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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Attock Petroleum Ltd.

Pakistan State Oil Co. Ltd.

Shell Pakistan Ltd.

Hi-Tech Lubricants Ltd.

Pakistan Refinery Ltd.

Attock Refinery Ltd.

Hascol Petroleum Ltd.

Cnergyico PK 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.

27.07%

0.65

43.24%

Pakistan KSE 100 Share

60.28%

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)

33.16%

EBIT to Interest (avg)

6.08

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.53

Sales to Capital Employed (avg)

19.18

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

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.99% (YoY

CASH AND EQV(HY)

Highest at PKR 30,469 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 9.01%

DEBTORS TURNOVER RATIO(HY)

Highest at 33.29%

-11What is not working for the Company

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 %

NET SALES(Q)

Lowest at PKR 99,425.34 MM

Here's what is working for Shell Pakistan Ltd.

Cash and Eqv

Highest at PKR 30,469 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 9.01%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 33.29%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -1.99% (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 936.74 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 936.74 MM has Grown at inf%

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 Shell Pakistan Ltd.

Operating Cash Flow

Lowest at PKR -1,436.3 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)

Net Profit

At PKR 3,446.24 MM has Grown at -66.77%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PKR MM)

Net Sales

Lowest at PKR 99,425.34 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)

Debt-Equity Ratio

Highest at -15.88 %

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