The Searle Co. Ltd. (SEARL) 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

Hoechst Pakistan Ltd.

Otsuka Pakistan Ltd.

Abbott Laboratories (Pakistan) Ltd.

Haleon Pakistan Ltd.

Highnoon Laboratories Ltd.

GlaxoSmithKline Pakistan Ltd.

AGP Ltd.

Ferozsons Laboratories Ltd.

Macter International Ltd.

The Searle Co. Ltd.

Citi Pharma Ltd.

Why is The Searle Co. Ltd. ?

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)

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

Poor long term growth as Operating profit has grown by an annual rate -10.51% of over the last 5 years

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%

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

Real-Time Research Report

Verdict Report

How much should you sell?

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.

46.85%

1.19

50.62%

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)

7.79%

EBIT Growth (5y)

-2.14%

EBIT to Interest (avg)

2.12

Debt to EBITDA (avg)

3.02

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

0.61

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

10.09%

ROE (avg)

7.89%

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

1.93

EV to EBIT

21.35

EV to EBITDA

16.79

EV to Capital Employed

1.76

EV to Sales

2.43

PEG Ratio

Dividend Yield

ROCE (Latest)

8.24%

ROE (Latest)

2.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

12What is working for the Company

NET PROFIT(HY)

At PKR 631.21 MM has Grown at 194.63%

ROCE(HY)

Highest at 7.61%

DEBT-EQUITY RATIO (HY)

Lowest at 24.1 %

RAW MATERIAL COST(Y)

Fallen by -8.9% (YoY

-12What is not working for the Company

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 MM has Fallen at -59.08%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.18%

NET PROFIT(Q)

At PKR 156.5 MM has Fallen at -64.31%

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

Debt-Equity Ratio

Lowest at 24.1 % 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

Raw Material Cost

Fallen by -8.9% (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.

Pre-Tax Profit

At PKR 184.26 MM has Fallen at -59.08%

over average net sales of the previous four periods of PKR 450.32 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (PKR MM)

Net Sales

At PKR 14,371.55 MM has Grown at -20.12%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)

Operating Cash Flow

Lowest at PKR -3,709.19 MM

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 156.5 MM has Fallen at -64.31%

over average net sales of the previous four periods of PKR 438.52 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PKR MM)

Debtors Turnover Ratio

Lowest at 1.18%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio