The Searle Co. Ltd.

  • Market Cap: Large Cap
  • Industry: Pharmaceuticals & Biotechnology
  • ISIN: PK0061701014
PKR
89.83
-0.64 (-0.71%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Otsuka Pakistan Ltd.
Abbott Laboratories (Pakistan) Ltd.
GlaxoSmithKline Pakistan Ltd.
Haleon Pakistan Ltd.
Highnoon Laboratories Ltd.
Hoechst Pakistan Ltd.
AGP Ltd.
Ferozsons Laboratories Ltd.
Macter International Ltd.
Citi Pharma Ltd.
The Searle Co. Ltd.

Why is The Searle Co. Ltd. ?

1
Poor Management Efficiency with a low ROCE of 10.09%
  • The company has been able to generate a Return on Capital Employed (avg) of 10.09% signifying low profitability per unit of total capital (equity and debt)
2
High Debt Company with a Debt to Equity ratio (avg) at 0 times
  • Poor long term growth as Operating profit has grown by an annual rate -10.51% of over the last 5 years
  • High Debt Company with a Debt to Equity ratio (avg) at 0 times
  • The company has been able to generate a Return on Equity (avg) of 7.89% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Operating profit has grown by an annual rate -10.51% of over the last 5 years
4
Flat results in Mar 25
  • OPERATING CASH FLOW(Y) Lowest at PKR -3,709.19 MM
  • NET SALES(HY) At PKR 14,371.55 MM has Grown at -20.12%
  • PRE-TAX PROFIT(Q) At PKR 184.26 has Fallen at -59.08%
5
With ROE of 8, it has a attractive valuation with a 1.5 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 risen by 322.9% ; the PEG ratio of the company is 0.1
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is The Searle Co. Ltd. for you?

High Risk, Medium Return

Absolute
Risk Adjusted
Volatility
The Searle Co. Ltd.
-100.0%
1.19
50.62%
Pakistan KSE 100 Share
26.26%
2.81
22.77%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
7.69%
EBIT Growth (5y)
0.14%
EBIT to Interest (avg)
2.12
Debt to EBITDA (avg)
3.02
Net Debt to Equity (avg)
0.24
Sales to Capital Employed (avg)
0.63
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.09%
ROE (avg)
7.89%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
78
Industry P/E
Price to Book Value
1.93
EV to EBIT
21.35
EV to EBITDA
16.79
EV to Capital Employed
1.76
EV to Sales
2.43
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
8.24%
ROE (Latest)
2.48%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

23What is working for the Company
DEBT-EQUITY RATIO (HY)

Lowest at 22.58 %

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -19.54% (YoY

NET SALES(Q)

Highest at PKR 9,697.27 MM

OPERATING PROFIT(Q)

Highest at PKR 2,098.66 MM

OPERATING PROFIT MARGIN(Q)

Highest at 21.64 %

PRE-TAX PROFIT(Q)

Highest at PKR 1,514.71 MM

NET PROFIT(Q)

Highest at PKR 903.08 MM

EPS(Q)

Highest at PKR 1.54

-9What is not working for the Company
OPERATING CASH FLOW(Y)

Lowest at PKR -968.29 MM

NET PROFIT(HY)

At PKR 784.33 MM has Grown at -57.32%

Here's what is working for The Searle Co. Ltd.

Pre-Tax Profit
At PKR 1,514.71 MM has Grown at 298.79%
over average net sales of the previous four periods of PKR 379.83 MM
MOJO Watch
Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (PKR MM)

Net Profit
At PKR 903.08 MM has Grown at 355.64%
over average net sales of the previous four periods of PKR 198.2 MM
MOJO Watch
Near term Net Profit trend is very positive

Net Profit (PKR MM)

Debt-Equity Ratio
Lowest at 22.58 % and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales
Highest at PKR 9,697.27 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (PKR MM)

Net Sales
At PKR 9,697.27 MM has Grown at 35.63%
over average net sales of the previous four periods of PKR 7,149.96 MM
MOJO Watch
Near term sales trend is positive

Net Sales (PKR MM)

Operating Profit
Highest at PKR 2,098.66 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (PKR MM)

Operating Profit Margin
Highest at 21.64 %
in the last five periods
MOJO Watch
Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit
Highest at PKR 1,514.71 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Net Profit
Highest at PKR 903.08 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (PKR MM)

EPS
Highest at PKR 1.54
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (PKR)

Raw Material Cost
Fallen by -19.54% (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

Here's what is not working for The Searle Co. Ltd.

Operating Cash Flow
Lowest at PKR -968.29 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)