KSE All Index25-Feb-14HASCOL IPO: On the floor price of Rs 20 during book building process HPL yield PE of 4.6x based on diluted EPS of Rs 4.32/sh reported in CY13 .Which is best PE multiple to subscribe for an IPO especially for an OMC. SUBSCRIBE
Rajesh Kumar Maheshwari
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OGDC - Oil & Gas Dev.Co25-Feb-14OGDC remains our pick with PE of 8.4x. The company has a growing hydrocarbon production status with production increase coming from development wells. The company has shown encouraging 1HFY14 EPS of Rs 15.63. Buy maintained
Faisal Shaji
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FCCL - Fauji Cement Company Ltd.24-Feb-14FCCL is one of the efficient cement players given cost efficiency and strong local cement demand. It has showed a tremendous 1HFY14 performance with an interim dividend of Re 0.75/sh. We expect FCCL to post EPS of Re 2.33/sh in FY14, and a cash dividend of Rs 1.75/sh. Fauji Cement spells dividend yield of 11%-12%, which is equivalent to FFC. Buy
Nabeel Khursheed
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HMB - Habib Metropolitan Bank Limited11-Nov-13We see HMB attractive based on higher dividend yield of 8.8% among other peer banks like BAHL, BAFL and ABL have dividend yield of 6.9, 7.9 and 7.3 respectively. And also HMB’s 48.8% ADR ratio is also stronger than the other peer banks.
We expect HMB to report EPS of Rs 3.40- 3.50 for CY13 along with final cash dividend of Rs 2/sh. HMB yield lower PE of 6.9x whereas BAHL, BAFL and ABL yields PE of 8.0x, 7.5x, 7.9x respectively, and higher dividend yield of 8.8%. BUY
Rajesh Kumar Maheshwari
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HMB - Habib Metropolitan Bank Limited07-Nov-13In the wake of new MPS we see spike in interest earned of commercial banks. HMB would be one beneficiary which is spelling PE of 6x to 7x. HMB can also pass on Rs 2 per share dividend. BUY HMB
Rajesh Kumar Maheshwari
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OGDC - Oil & Gas Dev.Co07-Nov-13OGDC is one company which is dynamic in terms of asset acreage and if things pick tempo at Kohlu which has recoverable reserves of 15TCF then fortunes could be realized in next 20years.
We like OGDC vide our last week call (could be retrieved from www.scstrade.com research portal). Maintain BUY in OGDC
Faisal Shaji
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FFC - Fauji Fertilizer Company Limited.31-Oct-13We believe investors should focus on earnings spree of FFC and should not be bothered by the fact that FFC couldn’t pass on any increase in gas prices to end-users due to the fact that international urea prices are similar to local prices. We believe urea manufacturers in general and FFC in particular are well entrenched in terms of already huge margins and should sustain gas price increase. BUY FFC
Faisal Shaji
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LUCK - Lucky Cement Limited 30-Oct-13LUCK could still match FY13 performance while notching year EPS of Rs 30/sh despite lower government spending in current fiscal that could hurt local cement sector dispatches. But LUCK cement dispatches is reporting yearly growth of 3.5 times due to its economy of scale and leader like status. LUCK spells FY14 PE of 7x albeit EVEBITDA of 7.8x & lessened dividend yield of 3% (since LUCK has always been a value investment since the payout ratio doesn’t exceed more than 30%). BUY LUCK
Faisal Shaji
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NATF - National Foods Limited. 24-Oct-13National Foods: Growing overseas sales stretch GP margin ...BUY maintained...
NATF reported 1QFY14 EPS of Rs 5.25/sh, against Rs.4.83/sh is same period last year.
we see sales will further increase in coming days and we expect NATF may report year end earning in the range of Rs 23- 25 for FY14, and yields leading PE of 13.5x and historical PE of 22x. We maintain BUY.
Rajesh Kumar Maheshwari
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POL - Pakistan Oilfields Ltd. 22-Oct-13POL profits jump by Rupee depreciation; full year earnings could get a boost. Pakistan Oilfields (POL) is now a great beneficiary of depreciating Rupee. The gross revenue notched Rs 9.4bn owing to higher realizable prices despite the fact that there is no significant jump in the overall production numbers of crude.
The dividend of POL could exceed Rs 55 – 60/share translating into annual dividend yield of 13% (a jump from 10%). Last year, POL passed on dividend of Rs 45/share.
It seems that POL could report handsome interim cash dividend of Rs 27 – 30/share
Faisal Shaji
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PSMC - Pak Suzuki Motor Co. Ltd. 21-Oct-13Auto industry is one of emerging industries in Pakistan; with three major players PSMC leads the industry in terms of sales.
Based on expected earnings PSMC and HCAR yield PE multiple of 4.5x each, which makes BUY stance for both companies and INDU yields 7.5x and we maintain SELL.
Rajesh Kumar Maheshwari
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NBP - National Bank Of Pakistan Ltd07-Oct-13NBP is deciphering PBV of 0.71x & PE of 8x and relatively underpriced at a time when interest rates shall increase. Despite SBP rulings over MDR of 6.5pc, we see NBP NIMs to remain intact at above 5pc. We see target earnings of Rs 6 per share in CY13 & PBV target price of Rs56 per share. Buy
Rajesh Kumar Maheshwari
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NCPL - Nishat Chunian Power07-Oct-13Nishat Chunian Power is on spot. It has given a dividend of Rs 2 before the announcement of FY13 results. Now NCPL announced Rs7.45 EPS with final dividend of Rs2. The cumulative dividend comes to Rs6 which translates into a dividend yield of 16%. Now we see further growth in earnings in FY14 with company has already got its share of receivables from GoP. NCPL deciphers PE of 4.5x. Buy
Faisal Shaji
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TGL - Tariq Glass Limited04-Oct-13The company installed new Float Glass Plant with capacity of 550 tons per day during 3rd quarter of FY13. We have estimated TGL shall report Rs 3.30/sh EPS during outgoing fiscal and Rs 4.80/sh EPS in FY14 given increase in float glass sales. TGL offers FY14 PE multiple of 5x which is awesome. The company is a continuous development story and hence we advise Long term BUY
Rajesh Kumar Maheshwari
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BAHL - Bank AL-Habib Limited 18-Jul-13At the aftermath of increase in benchmark rates some second tier banks like BAHL looks good. BAHL yields PE of 5x to 6x.
Faisal Shaji (Head of Research)
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FFBL - Fauji Fertilizer Bin Qasim17-Jul-13Fauji Fertilizer Bin Qasim Limited (FFBL) earnings are expected to flourish ahead and good earnings are expected to be reported at the year end on the basis that the margins on DAP are increasing due to decrease in the phosphore prices internationally which is a major raw material of DAP. We expect earnings of Rs4.8-5.00/sh to be reported at the year end with the DCF target price of Rs53/sh. We signal BUY for FFBL.
Saud Khan Research Analyst
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