Hoechst Pakistan (KAR:HPL) Altman Z-Score: 7.70 (As of Jun. 28, 2026) — 87% Above Median


KAR:HPL Hoechst Pakistan Ltd KAR:HPL
86 GF Score
Price ₨4,015.00
GF Value ₨3,253.76
Valuation Modestly Overvalued
! 1 Warning Sign
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What is Hoechst Pakistan Altman Z-Score?

Hoechst Pakistan KAR:HPL 86 Altman Z-Score is 7.70 as of Jun. 28, 2026, which is 87% above its 10-year median of 4.11. GuruFocus rates KAR:HPL with a GF Score™ of 86/100 and a GF Value™ of ₨3,253.76 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 949 Drug Manufacturers companies, Hoechst Pakistan ranks better than 81.35% on this metric.

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 7.7 is strong.

Hoechst Pakistan has a Altman Z-Score of 7.70, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Hoechst Pakistan's Altman Z-Score or its related term are showing as below:

KAR:HPL' s Altman Z-Score Range Over the Past 10 Years
Min: 2.36   Med: 4.11   Max: 7.87
Current: 7.7

During the past 13 years, Hoechst Pakistan's highest Altman Z-Score was 7.87. The lowest was 2.36. And the median was 4.11.


Hoechst Pakistan  (KAR:HPL) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Hoechst Pakistan Altman Z-Score Related Terms


Hoechst Pakistan Altman Z-Score Historical Data

* Premium members only.

The historical data trend for Hoechst Pakistan's Altman Z-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Hoechst Pakistan Altman Z-Score Chart

Hoechst Pakistan Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.12 2.87 4.67 5.78 7.87

Hoechst Pakistan Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.65 6.25 7.11 7.87 7.82

KAR:HPL vs LLY, JNJ, ABBV: Altman Z-Score Comparison

For the Drug Manufacturers - General subindustry, Hoechst Pakistan's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Hoechst Pakistan Altman Z-Score vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Hoechst Pakistan's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Hoechst Pakistan's Altman Z-Score falls into.


KAR:HPL
86GF Score
Hoechst Pakistan Ltd KAR:HPL
Altman Z-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Hoechst Pakistan Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Hoechst Pakistan's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.3176+1.4*0.3208+3.3*0.3427+0.6*6.1607+1.0*2.0462
=7.70

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Mar. 2026:
Total Assets was ₨15,190 Mil.
Total Current Assets was ₨10,728 Mil.
Total Current Liabilities was ₨5,904 Mil.
Retained Earnings was ₨4,873 Mil.
Pre-Tax Income was 1287.656 + 1071.819 + 1536.702 + 1289.079 = ₨5,185 Mil.
Interest Expense was -0.146 + 14.566 + -18.263 + -16.673 = ₨-21 Mil.
Revenue was 7699.476 + 6386.399 + 8284.284 + 8711.238 = ₨31,081 Mil.
Market Cap (Today) was ₨38,724 Mil.
Total Liabilities was ₨6,286 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(10727.749 - 5903.542)/15189.794
=0.3176

X2=Retained Earnings/Total Assets
=4873.487/15189.794
=0.3208

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(5185.256 - -20.516)/15189.794
=0.3427

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=38723.711/6285.616
=6.1607

X5=Revenue/Total Assets
=31081.397/15189.794
=2.0462

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Hoechst Pakistan has a Altman Z-Score of 7.70 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.

Frequently Asked Questions Learn more about Altman Z-Score →
What does a Altman Z-Score of 7.70 mean?
Hoechst Pakistan (KAR:HPL) has a Altman Z-Score of 7.70 as of Jun. 28, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Hoechst Pakistan and its competitors. This is 87% above median its historical median of 4.11. Over the past decade, Hoechst Pakistan's Altman Z-Score has ranged from 2.36 to 7.87. According to the industry distribution chart, Hoechst Pakistan ranks #177 out of 949 companies in the Drug Manufacturers industry, placing it in the top 18.7%.
Is Hoechst Pakistan's Altman Z-Score too high?
Hoechst Pakistan's current Altman Z-Score of 7.70 is 87% above median its 10-year median of 4.11. Over the past 10 years, this metric has ranged from a low of 2.36 to a high of 7.87. The Drug Manufacturers industry median Altman Z-Score is 3.20. Hoechst Pakistan's value of 7.70 is 140.6% above this industry median. Based on the distribution chart, Hoechst Pakistan ranks #177 out of 949 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Hoechst Pakistan has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hoechst Pakistan's Altman Z-Score compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Hoechst Pakistan ranks #177 out of 949 companies for Altman Z-Score. This places Hoechst Pakistan in the top 19% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 3.20. Hoechst Pakistan's value of 7.70 is 140.6% above this benchmark. Historically, Hoechst Pakistan's own Altman Z-Score has ranged from 2.36 to 7.87 over the past decade. While the company's 10-year median is 4.11 vs. the industry median of 3.20, Hoechst Pakistan has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Altman Z-Score for a Drug Manufacturers company?
The median Altman Z-Score among Drug Manufacturers companies is 3.20, based on 949 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hoechst Pakistan's current Altman Z-Score of 7.70 is 140.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Hoechst Pakistan and its competitors. For the Drug Manufacturers industry, the median Altman Z-Score is 3.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hoechst Pakistan's current Altman Z-Score is 7.70, which is 87% above median its own 10-year median of 4.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hoechst Pakistan stock overvalued right now?
Based on GuruFocus' analysis, Hoechst Pakistan (KAR:HPL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₨3,253.76, compared to a current price of ₨4,015.00 — trading 23.4% above its estimated fair value. The current Altman Z-Score is 7.70, which is 87% above median its 10-year median of 4.11 and 140.6% above the Drug Manufacturers industry median of 3.20. Hoechst Pakistan's overall GF Score™ is 86/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Hoechst Pakistan (KAR:HPL), the current Altman Z-Score is 7.70 as of Jun. 28, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Hoechst Pakistan (KAR:HPL) Overvalued in 2026?

Based on GuruFocus' analysis, Hoechst Pakistan stock appears to be overvalued. The current stock price of ₨4,015.00 is trading 23.4% above its estimated GF Value™ of ₨3,253.76. GuruFocus considers Hoechst Pakistan to be Modestly Overvalued.

Key valuation signals for KAR:HPL:

  • Altman Z-Score: 7.70 (87% above median its 10-year median of 4.11)
  • GF Value™: ₨3,253.76 vs. price of ₨4,015.00 (23.4% above fair value)
  • GF Score™: 86/100 with 1 warning sign
  • Industry Position: 140.6% above the Drug Manufacturers median (#177 of 949)

No single metric tells the full story. See the KAR:HPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hoechst Pakistan Business Description

Address Plot 23, Sector 22, Korangi Industrial Area, Karachi, PAK, 74900
Hoechst Pakistan Ltd is a healthcare company of Pakistan, focused on patient needs and engaged in the manufacturing, promotion, and sale of pharmaceutical and vaccines. The company engages in the manufacturing, selling and trading of pharmaceutical and related products.
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Altman Z-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₨4,015.00
Price
₨3,253.76
GF Value