Hi-Tech Lubricants Valuation

Is HTL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HTL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HTL (PKR42.29) is trading below our estimate of fair value (PKR43.38)

Significantly Below Fair Value: HTL is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HTL?

Key metric: As HTL is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for HTL. This is calculated by dividing HTL's market cap by their current revenue.
What is HTL's PS Ratio?
PS Ratio	0.2x
Sales	PK₨27.34b
Market Cap	PK₨5.89b

HTL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.3x
Enterprise Value/EBITDA	13.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does HTL's PS Ratio compare to its peers?

The above table shows the PS ratio for HTL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.8x
UDPL United Distributors Pakistan	1.5x	n/a	PK₨1.6b
ORM Orient Rental Modaraba	0.3x	n/a	PK₨588.8m
GVGL Ghani Value Glass	1.2x	n/a	PK₨6.1b
PCAL Pakistan Cables	0.3x	n/a	PK₨7.4b
HTL Hi-Tech Lubricants	0.2x	18.9%	PK₨5.9b

Price-To-Sales vs Peers: HTL is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.8x).

Price to Sales Ratio vs Industry

How does HTL's PS Ratio compare vs other companies in the Asian Trade Distributors Industry?

110 Companies	Price / Sales	Estimated Growth	Market Cap

110 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: HTL is good value based on its Price-To-Sales Ratio (0.2x) compared to the Asian Trade Distributors industry average (0.6x).

Price to Sales Ratio vs Fair Ratio

What is HTL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HTL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.2x
Fair PS Ratio	0.3x

Price-To-Sales vs Fair Ratio: HTL is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.