Thal Ltd. (THALL) 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

Baluchistan Wheels Ltd.

Agriauto Industries Ltd.

Thal Ltd.

Loads Ltd.

Bolan Castings Ltd.

Exide Pakistan Ltd.

Why is Thal Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 6.28

Poor long term growth as Operating profit has grown by an annual rate -173.55% of over the last 5 years

Flat results in Mar 25

NO KEY NEGATIVE TRIGGERS

With ROE of 16.8, it has a expensive valuation with a 0.6 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 -10.6%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Thal Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Thal Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Thal Ltd.

-100.0%

-0.36

36.79%

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)

12.80%

EBIT Growth (5y)

-33.10%

EBIT to Interest (avg)

6.28

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.60

Tax Ratio

84.54%

Dividend Payout Ratio

11.17%

Pledged Shares

Institutional Holding

ROCE (avg)

5.93%

ROE (avg)

16.83%

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

0.89

EV to EBIT

-236.44

EV to EBITDA

26.48

EV to Capital Employed

0.86

EV to Sales

1.06

PEG Ratio

Dividend Yield

1.75%

ROCE (Latest)

-0.36%

ROE (Latest)

15.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

No Trend

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

8What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 37.49%

CASH AND EQV(HY)

Highest at PKR 35,181.49 MM

DEBT-EQUITY RATIO (HY)

Lowest at -25.44 %

INVENTORY TURNOVER RATIO(HY)

Highest at 3.4 times

DEBTORS TURNOVER RATIO(HY)

Highest at 6.21 times

DIVIDEND PER SHARE(HY)

Highest at PKR 6.21

NET PROFIT(Q)

Highest at PKR 3,241.68 MM

EPS(Q)

Highest at PKR 40.01

-5What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 48.37

RAW MATERIAL COST(Y)

Grown by 13.15% (YoY

OPERATING PROFIT(Q)

Lowest at PKR 76.67 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.75 %

Here's what is working for Thal Ltd.

Net Profit

Highest at PKR 3,241.68 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

EPS

Highest at PKR 40.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PKR)

Cash and Eqv

Highest at PKR 35,181.49 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -25.44 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 3.4 times

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 6.21 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at PKR 6.21

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (PKR)

Dividend Payout Ratio

Highest at 37.49%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Thal Ltd.

Interest Coverage Ratio

Lowest at 48.37

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at PKR 76.67 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PKR MM)

Operating Profit Margin

Lowest at 0.75 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 13.15% (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