New Risk • Dec 06
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 14% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 35% per year over the past 5 years. Revenue is less than US$1m. Market cap is less than US$10m (PK₨379.6m market cap, or US$1.33m). Minor Risks Share price has been volatile over the past 3 months (8.6% average weekly change). Shareholders have been diluted in the past year (14% increase in shares outstanding). New Risk • Nov 14
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended March 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (8.9% average weekly change). Earnings have declined by 14% per year over the past 5 years. Revenue is less than US$1m (PK₨51m revenue, or US$179k). Market cap is less than US$10m (PK₨289.9m market cap, or US$1.01m). Minor Risk Latest financial reports are more than 6 months old (reported March 2023 fiscal period end). Announcement • Nov 02
Modaraba Al-Mali Announces Executive Changes Modaraba Al-Mali, managed by LSE Capital Limited, has announced a significant change to its executive leadership. The company informed the Pakistan Stock Exchange (PSE) about the immediate resignation of Mr. Muhammad Adeel Rehman from his position as Company Secretary, citing personal reasons for his departure. Following this development, the Board of Directors has appointed Mr. Inam Ullah as the new Company Secretary. His tenure in the role is set to commence on October 31, 2023, succeeding Mr. Muhammad Adeel Rehman. Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to PK₨4.47, the stock trades at a trailing P/E ratio of 6.1x. Average trailing P/E is 13x in the Specialty Retail industry in Asia. Total returns to shareholders of 199% over the past three years. Valuation Update With 7 Day Price Move • Jan 24
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to PK₨5.65, the stock trades at a trailing P/E ratio of 7.7x. Average trailing P/E is 13x in the Specialty Retail industry in Asia. Total returns to shareholders of 216% over the past three years. Board Change • Nov 16
No independent directors There are 6 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 6 new directors. No experienced directors. No highly experienced directors. No independent directors (6 non-independent directors). Director Huma Ejaz is the most experienced director on the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of board continuity. Lack of experienced directors. Valuation Update With 7 Day Price Move • May 24
Investor sentiment deteriorated over the past week After last week's 18% share price decline to PK₨5.83, the stock trades at a trailing P/E ratio of 6.6x. Average trailing P/E is 14x in the Specialty Retail industry in Asia. Total returns to shareholders of 192% over the past three years. Board Change • Apr 27
No independent directors There are 7 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 7 new directors. No experienced directors. No highly experienced directors. No independent directors (7 non-independent directors). Director Huma Ejaz is the most experienced director on the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of board continuity. Lack of experienced directors. Valuation Update With 7 Day Price Move • Apr 11
Investor sentiment improved over the past week After last week's 16% share price gain to PK₨7.99, the stock trades at a trailing P/E ratio of 3.6x. Average trailing P/E is 15x in the Specialty Retail industry in Asia. Total returns to shareholders of 294% over the past three years. Announcement • Feb 09
Modaraba Al-Mali Announces Executive Changes Modaraba Al-Mali announced that Ms. Aasiya Riaz has been appointed as Director of the company with effect from February 08, 2022 in place of Mr. Amir Zia. Modaraba Al-Mali is a multipurpose and perpetual Modaraba floated in Pakistan on July 8, 1987 and is managed by BankIslami Modaraba Investments Limited. Valuation Update With 7 Day Price Move • Dec 20
Investor sentiment improved over the past week After last week's 15% share price gain to PK₨9.12, the stock trades at a trailing P/E ratio of 4.1x. Average trailing P/E is 15x in the Specialty Retail industry in Asia. Total returns to shareholders of 321% over the past three years. Valuation Update With 7 Day Price Move • Dec 06
Investor sentiment deteriorated over the past week After last week's 15% share price decline to PK₨8.82, the stock trades at a trailing P/E ratio of 3.9x. Average trailing P/E is 14x in the Specialty Retail industry in Asia. Total returns to shareholders of 287% over the past three years. Reported Earnings • Oct 17
Full year 2021 earnings released: EPS PK₨1.83 (vs PK₨1.01 in FY 2020) Full year 2021 results: Net income: PK₨33.8m (up 82% from FY 2020). Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has increased by 63% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Oct 13
Upcoming dividend of PK₨0.37 per share Eligible shareholders must have bought the stock before 20 October 2021. Payment date: 17 November 2021. Trailing yield: 2.2%. Lower than top quartile of Pakistani dividend payers (10%). Higher than average of industry peers (1.7%). Valuation Update With 7 Day Price Move • Oct 12
Investor sentiment deteriorated over the past week After last week's 17% share price decline to PK₨17.80, the stock trades at a trailing P/E ratio of 13.6x. Average trailing P/E is 14x in the Specialty Retail industry in Asia. Total returns to shareholders of 381% over the past three years. Valuation Update With 7 Day Price Move • Sep 11
Investor sentiment deteriorated over the past week After last week's 16% share price decline to PK₨22.20, the stock trades at a trailing P/E ratio of 17.4x. Average trailing P/E is 15x in the Specialty Retail industry in Asia. Total returns to shareholders of 525% over the past three years. Valuation Update With 7 Day Price Move • Aug 12
Investor sentiment improved over the past week After last week's 26% share price gain to PK₨23.05, the stock trades at a trailing P/E ratio of 18.1x. Average trailing P/E is 16x in the Specialty Retail industry in Asia. Total returns to shareholders of 593% over the past three years. Valuation Update With 7 Day Price Move • Jul 23
Investor sentiment improved over the past week After last week's 15% share price gain to PK₨15.46, the stock trades at a trailing P/E ratio of 12.1x. Average trailing P/E is 17x in the Specialty Retail industry in Asia. Total returns to shareholders of 410% over the past three years. Valuation Update With 7 Day Price Move • Jul 05
Investor sentiment improved over the past week After last week's 28% share price gain to PK₨10.22, the stock trades at a trailing P/E ratio of 8x. Average trailing P/E is 17x in the Specialty Retail industry in Asia. Total returns to shareholders of 280% over the past three years. Valuation Update With 7 Day Price Move • May 26
Investor sentiment improved over the past week After last week's 24% share price gain to PK₨4.97, the stock trades at a trailing P/E ratio of 3.9x. Average trailing P/E is 17x in the Specialty Retail industry in Asia. Total returns to shareholders of 65% over the past three years. Reported Earnings • May 02
Third quarter 2021 earnings released: EPS PK₨0.15 (vs PK₨0.16 loss in 3Q 2020) Third quarter 2021 results: Net income: PK₨2.75m (up PK₨5.72m from 3Q 2020). Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Mar 11
New 90-day low: PK₨4.07 The company is down 4.0% from its price of PK₨4.24 on 11 December 2020. The Pakistani market is up 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Specialty Retail industry, which is up 9.0% over the same period. Reported Earnings • Feb 23
Second quarter 2021 earnings released: EPS PK₨0.13 (vs PK₨0.18 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: PK₨3.74m (down 12% from 2Q 2020). Net income: PK₨2.36m (down 29% from 2Q 2020). Profit margin: 63% (down from 78% in 2Q 2020). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jan 18
Investor sentiment improved over the past week After last week's 21% share price gain to PK₨5.30, the stock is trading at a trailing P/E ratio of 5.3x, up from the previous P/E ratio of 4.4x. This compares to an average P/E of 17x in the Specialty Retail industry in Asia. Total returns to shareholders over the past three years are 76%. Is New 90 Day High Low • Jan 18
New 90-day high: PK₨5.30 The company is up 20% from its price of PK₨4.42 on 20 October 2020. The Pakistani market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Specialty Retail industry, which is up 13% over the same period. Valuation Update With 7 Day Price Move • Dec 31
Investor sentiment improved over the past week After last week's 16% share price gain to PK₨4.75, the stock is trading at a trailing P/E ratio of 4.7x, up from the previous P/E ratio of 4.1x. This compares to an average P/E of 17x in the Specialty Retail industry in Asia. Total returns to shareholders over the past three years are 66%. Valuation Update With 7 Day Price Move • Nov 28
Market bids up stock over the past week After last week's 17% share price gain to PK₨4.66, the stock is trading at a trailing P/E ratio of 4.6x, up from the previous P/E ratio of 4x. This compares to an average P/E of 17x in the Specialty Retail industry in Asia. Total returns to shareholders over the past three years are 76%. Reported Earnings • Nov 02
First quarter 2021 earnings released: EPS PK₨0.16 The company reported a mediocre first quarter result with weaker earnings and profit margins, although revenues were improved. First quarter 2021 results: Revenue: PK₨6.20m (up 43% from 1Q 2020). Net income: PK₨2.69m (down 4.5% from 1Q 2020). Profit margin: 44% (down from 65% in 1Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 16
Market pulls back on stock over the past week After last week's 20% share price decline to PK₨4.63, the stock is trading at a trailing P/E ratio of 4.6x, down from the previous P/E ratio of 5.7x. This compares to an average P/E of 17x in the Specialty Retail industry in Asia. Total returns to shareholders over the past three years are 62%. Upcoming Dividend • Oct 05
Upcoming Dividend of PK₨0.70 Per Share Will be paid on the 11th of November to those who are registered shareholders by the 12th of October. The trailing yield of 13% is in the top quartile of Pakistani dividend payers (7.4%), and it is higher than industry peers (1.6%). Reported Earnings • Oct 04
Full year earnings released - EPS PK₨1.01 Over the last 12 months the company has reported total profits of PK₨18.6m, up 134% from the prior year. Total revenue was PK₨23.4m over the last 12 months, down 25% from the prior year. Profit margins were 80%, which is higher than the 26% margin from last year. The increase in margin was driven by lower expenses.