International Packaging Films Ltd

International Packaging Films Ltd maintains a capital structure characterized by significant leverage, with a debt-to-equity ratio of 1.06 and long-term debt totaling PKR 14.8 billion against total equity of PKR 13.9 billion. Liquidity is constrained, evidenced by a current ratio of 0.85, which falls below the standard threshold of 1.0, indicating potential short-term coverage challenges. The company holds PKR 0.77 billion in cash and equivalents, resulting in a negative net cash position after accounting for total liabilities of PKR 29.7 billion. Despite negative operating cash flow of PKR -1.6 billion, the company generated positive free cash flow of PKR 0.92 billion, supported by capital expenditures of PKR 0.88 billion.

Profitability metrics indicate modest returns, with a return on equity (ROE) of 8.65% and a return on assets (ROA) of 2.76%. The company trades at a price-to-earnings (P/E) multiple of 19.23 and an enterprise value-to-EBITDA (EV/EBITDA) of 23.14, suggesting a premium valuation relative to its asset base, which is reflected in a price-to-book (P/B) ratio of 1.66. Gross profit stands at PKR 5.0 billion on revenue of PKR 34.4 billion, yielding a gross margin of approximately 14.5%, while operating income is PKR 1.6 billion, resulting in an operating margin of roughly 4.7%. Net income is reported at PKR 1.2 billion.

Revenue concentration and segment details are not explicitly provided in the available data, limiting the ability to assess specific product or geographic exposure. The company’s total revenue of PKR 34.4 billion serves as the primary scale metric, with no further breakdown of segment contributions or regional sales distribution available for analysis.

Growth trajectory analysis is constrained by the absence of historical period data in the current input. Without multi-year revenue or net income trends, it is not possible to determine the company’s historical growth rate or momentum. The current financial snapshot provides a static view of performance, lacking the temporal context required to evaluate acceleration or deceleration in business activity.

Risk assessment highlights medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, reinforcing the leverage concerns. The current ratio of 0.85 further underscores liquidity pressure, requiring careful management of working capital. Dilution risk is assessed as low, with basic and diluted shares outstanding both at 735.2 million, indicating no immediate options or convertible instruments impacting share count.

Recent events include a sector contamination re-analysis via the sector classification direct path, audited on 2026-07-13, which triggered a sector fix batch for INTA.PSX. This administrative adjustment does not reflect operational changes but ensures accurate classification within the Containers & Packaging industry. No other significant news, filing, or transcript observations are present in the current data set.

Net income surged to PKR 1.2 billion in FY0, significantly outperforming the prior year's PKR 90.8 million.

Free cash flow turned positive at PKR 916.8 million in FY0, reversing a significant negative trend.

Capital expenditure intensity is lower than the cohort median, suggesting efficient capital deployment relative to peers.

Debt-to-equity ratio of 1.06 places the company in the bottom quartile of its peer cohort.

The company faces a high credit risk flag, signaling potential difficulties in meeting financial obligations.

Cash conversion ratio of -1.34 is in the bottom quartile, indicating poor cash generation from operations.

Operating margin of 4.67% trails the cohort median of 4.94%, reflecting weaker operational efficiency than peers.

Long-term debt increased to PKR 14.8 billion in FY0, up from PKR 9.8 billion in the prior year.