Treet Corporation Limited (TREET):
Treet Corporation Limited (the holding company) was founded as a Public Limited Company in Pakistan on January 22, 1977, under the Companies Act, 1913. Pakistan Stock Exchange Limited lists its shares. The holding company's main business is manufacturing and selling razors and razor blades, as well as other trade activities. The holding company's registered office is at 72-B, Industrial Area Kot Lakhpat, Lahore.
Fig Ref: Treet 20 Year Chart Price History
KEY INDICATORS:
The total market value of Treet at present share price is Rs. 3,206,390,600.
Segments of TREET:
TREET is not only involved in the manufacturing and production of the blade it depends on other sectors for income and revenue generation the other sectors include:
1.Soaps
2.Corrugation
3.Battery
4.Bike
5.Trading
6.Pharmaceutical
Their sector-wise sales and changes are as follows:
Blades and razors being the major and main segment of TREET have witnessed a sufficient increase of 24.83% in the prior nine months. From this, we can see that the sales segment of soap in the previous nine-month has increased by 6.91%. The sector of corrugation in the nine-month witnessed a sale decrease of 2.17%. Battery and Pharmaceutical businesses showed an increase in sales for the previous nine-month by 40.33% and 4.91% respectively. Sales of the Trading and Bike segment have decreased by 40.66% and 84.11% for the prior nine months.
Sales and Profits:
The table shows the sale and the gross profit that the company has made in some previous years. All values are in thousands
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
| Sales | 6,040,105 | 6,760,118 | 6,094,956 | 5,355,311 | 4,734,787 | 3,9,54,275 | 4,153,281 |
| Gross Profit | 1,982,616 | 2,217,652 | 1,598,263 | 1,700,478 | 1,388,609 | 1,110,305 | 1,225,869 |
More recently, TREET's top line increased by over 10% in FY16 FY15. The majority of this growth may be credited to blade sales, which increased by 20%, while the bike category declined by nearly 25% in the face of fierce competition. Blades, on the other hand, accounted for 62 percent of revenue in FY16, more than offsetting the lackluster performance of other divisions such as corrugated boxes and bicycles. TCL's gross profit margins improved in FY17 as a result of the blade segment's good performance and the addition of the pharmaceutical business segment. Treet has purchased a 58 percent share in Renacon Pharma Limited, Pakistan's industry leader in dialysis concentrate manufacture. The sales of TREET stock have increased almost by 50% which is enough to suggest that it has a great future.
Financial Health:
Company has strong financial health
| 2020 | 2019 | 2018 | 2017 | 2016 | |
| Assets | 21,724,028 | 21,908,622 | 17,798,015 | 15,686,077 | 11,398,361 |
| Liabilities | 10,470,052 | 10,554,585 | 9,475,629 | 7,429,795 | 3,273,280 |
| Equity | 11,253,976 | 11,354,037 | 8,322,386 | 8,256,282 | 6,747,037 |
The Current ratio for TREET in FY22 is 1.125 which means that is higher than one because it has a higher proportion of short-term asset value relative to the value of its short-term liabilities, a corporation is more capable of meeting its obligations. The financial health is good and so it is better if the investor invests his/her money in TREET.
TCL's razor blades division is still the company's best-performing segment and its greatest revenue generator. Increased competition, on the other hand, has resulted in minor increases in profitability among existing divisions, prompting the corporation to strengthen its diversification efforts.
Share value and Investment recommendation:
TREET is a very strong stock at this time in the company. Its stock price is undervalued and people looking to buy it must do so because the stock prices of TREET are deemed to increase in the future. It will be a profitable investment if TREET keeps on diversifying. The book value of the share is Rs 108.07 and the earning per share is Rs 0.83 this shows that TREET is a profitable share. The majority of investors appear to have already recognized the company's potential, and the value has been fully included in the present market price. The share is a value share as of now.
