Unilever Pakistan Foods Ltd. (UPFL) 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

National Foods Ltd. (Pakistan)

Al-Abbas Sugar Mills Ltd.

JDW Sugar Mills Ltd.

Unity Foods Ltd.

Habib Sugar Mills Ltd.

Unilever Pakistan Foods Ltd.

Frieslandcampina Engro Pakistan Ltd.

Fauji Foods Ltd.

Ismail Industries Ltd.

Mitchell's Fruit Farms Ltd.

Shakarganj Ltd.

Why is Unilever Pakistan Foods Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 80.27%

Healthy long term growth as Operating profit has grown by an annual rate 23.10%
Company has very low debt and has enough cash to service the debt requirements

With ROE of 45.3, it has a very attractive valuation with a 9.9 Price to Book Value

The stock is trading at a discount 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 -16.8%
At the current price, the company has a high dividend yield of 9.7

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 FMCG)

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

Is Unilever Pakistan Foods Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Unilever Pakistan Foods Ltd.

27.48%

1.74

15.93%

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)

20.93%

EBIT Growth (5y)

19.16%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.81

Sales to Capital Employed (avg)

2.56

Tax Ratio

33.15%

Dividend Payout Ratio

171.43%

Pledged Shares

Institutional Holding

ROCE (avg)

298.13%

ROE (avg)

80.27%

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

20.36

EV to EBIT

21.44

EV to EBITDA

20.12

EV to Capital Employed

42.01

EV to Sales

5.08

PEG Ratio

Dividend Yield

6.99%

ROCE (Latest)

195.94%

ROE (Latest)

67.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

7What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 199.92%

RAW MATERIAL COST(Y)

Fallen by 1.77% (YoY

DIVIDEND PER SHARE(HY)

Highest at PKR 15.12

NET SALES(Q)

Highest at PKR 10,472.57 MM

OPERATING PROFIT(Q)

Highest at PKR 2,741.92 MM

OPERATING PROFIT MARGIN(Q)

Highest at 26.18 %

PRE-TAX PROFIT(Q)

Highest at PKR 2,735.26 MM

-9What is not working for the Company

ROCE(HY)

Lowest at 41.97%

INTEREST COVERAGE RATIO(Q)

Lowest at 8,461.42

INTEREST(Q)

Highest at PKR 32.41 MM

Here's what is working for Unilever Pakistan Foods Ltd.

Net Sales

Highest at PKR 10,472.57 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (PKR MM)

Operating Profit

Highest at PKR 2,741.92 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PKR MM)

Operating Profit Margin

Highest at 26.18 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at PKR 2,735.26 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Dividend per share

Highest at PKR 15.12

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (PKR)

Dividend Payout Ratio

Highest at 199.92%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 1.77% (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 155.67 MM

in the last five periods

MOJO Watch

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

Depreciation (PKR MM)

Here's what is not working for Unilever Pakistan Foods Ltd.

Interest

At PKR 32.41 MM has Grown at 151.16%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Interest Coverage Ratio

Lowest at 8,461.42

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at PKR 32.41 MM

in the last five periods and Increased by 151.16% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)