Unity Foods Ltd. (UNITY) 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

Thal Industries Corp. Ltd.

Mehran Sugar Mills Ltd.

Habib Sugar Mills Ltd.

Faran Sugar Mills Ltd.

Matco Foods Ltd.

Unity Foods Ltd.

Tandlianwala Sugar Mills Ltd.

Habib Rice Products Ltd.

Premier Sugar Mills & Distillery Co. Ltd.

Chashma Sugar Mills Ltd.

Mirpurkhas Sugar Mills Ltd.

Why is Unity Foods Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at 0 times

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 6.95% signifying low profitability per unit of shareholders funds

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 0%, its profits have fallen by -703.1%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Unity Foods Ltd. should be less than 10%
Overall Portfolio exposure to Other Agricultural Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)

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

Is Unity Foods Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Unity Foods Ltd.

-100.0%

-0.07

36.43%

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)

13.73%

EBIT Growth (5y)

31.04%

EBIT to Interest (avg)

2.52

Debt to EBITDA (avg)

2.79

Net Debt to Equity (avg)

1.35

Sales to Capital Employed (avg)

1.44

Tax Ratio

33.01%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

16.69%

ROE (avg)

6.95%

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

1.68

EV to EBIT

7.74

EV to EBITDA

7.04

EV to Capital Employed

1.28

EV to Sales

0.71

PEG Ratio

0.13

Dividend Yield

ROCE (Latest)

16.53%

ROE (Latest)

9.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PKR 9,318.19 MM

NET PROFIT(HY)

Higher at PKR 626.91 MM

RAW MATERIAL COST(Y)

Fallen by -21.02% (YoY

CASH AND EQV(HY)

Highest at PKR 36,103.71 MM

-10What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.91 times

NET SALES(Q)

Lowest at PKR 11,829.86 MM

OPERATING PROFIT(Q)

Lowest at PKR 1,366.31 MM

PRE-TAX PROFIT(Q)

At PKR 265.83 MM has Fallen at -44.05%

NET PROFIT(Q)

At PKR 120.03 MM has Fallen at -63.71%

Here's what is working for Unity Foods Ltd.

Operating Cash Flow

Highest at PKR 9,318.19 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PKR MM)

Cash and Eqv

Highest at PKR 36,103.71 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -21.02% (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 183.49 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 Unity Foods Ltd.

Net Sales

At PKR 11,829.86 MM has Fallen at -38.87%

over average net sales of the previous four periods of PKR 19,352.46 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (PKR MM)

Net Sales

Lowest at PKR 11,829.86 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)

Operating Profit

Lowest at PKR 1,366.31 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PKR MM)

Pre-Tax Profit

At PKR 265.83 MM has Fallen at -44.05%

over average net sales of the previous four periods of PKR 475.14 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PKR MM)

Net Profit

At PKR 120.03 MM has Fallen at -63.71%

over average net sales of the previous four periods of PKR 330.75 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PKR MM)

Debtors Turnover Ratio

Lowest at 2.91 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at PKR 1.99 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income