POL - Pakistan Oilfields Ltd.
Wednesday, January 11, 2012 12:22 PM
POL is riding on the success of joint venture partners at Tal block Distt. Kohat. POL has also found good flows in Distt. Attock and hence we see its earnings propensity to remain intact. Unlike other E&Ps, POL is exposed to low risk of prevailing inter corporate debt since its size is small. POL yield FY12 PE of 6x & div.yield of 10%. We assign target price of Rs 440 - 450 per share. It is also sitting on a better cash per share. BUY
Faisal Shaji Head of Research
BAFL - Bank Alfalah Limited
Wednesday, January 11, 2012 12:16 PM
We like BAFL given earnings propensity coming for the first time in CY11. BAFL is yielding PE of 4x & PBV of 0.6x which is extremely bet. There is a change of guard in BAFL as far as leadership is concerned and the bank is already known for the best Market cap to deposit ratio. BAFL has continuously provided against bad loans since 2004 and hence sitting pretty as against peers. BUY
Faisal Shaji Head of Research
MCB - MCB Bank Limited
Wednesday, January 11, 2012 12:12 PM
We like MCB given lowest ever PE of 6x in nearly 8yrs. MCB is known for low cost deposit penetration and better risk management. MCB has reaped better NIMs and spread over the years due to efficient business model. BUY
Faisal Shaji Head of Research
FATIMA - Fatima Fertilizer Company Ltd
Friday, December 09, 2011 5:16 PM
Fatima Fertilizer to attain benefit of any urea price increase. Fatima is already getting dedicated gas supplies and hence at a favorable position. If price of urea increases then Fatima would also yield CY11 PE of 6x. Buy Fatima
Faisal Shaji Research Head
MCB - MCB Bank Limited
Friday, December 09, 2011 5:13 PM
We like MCB which is yielding CY10 PE 6x i.e. 3 year below average. MCB is a consistent dividend payer and less affected to provisions against NPLs given best business model. MCB is also a low cost deposit play. Buy
Faisal Shaji Research Head
ABL - Allied Bank Limited
Friday, October 21, 2011 10:44 AM
ABL continued to impress with its earnings growth; after tax profit increased by 32% in 9MCY11 (Diluted EPS: Rs 8.98/sh). We expect ABL to yield CY11 EPS of Rs 12.03/sh, growing by 14% y-o-y basis. We also expect it to declare final dividend in the range of Rs 2.0/sh – Rs 2.5/sh. We have fine tuned our model which yield justified Price to Book Value multiple (PBV) of 1.8x wherein upgrading our target price to Rs 93.4/sh (45% upside). We signal ‘Buy’.
Research Analyst: Zain Saleem
FCCL - Fauji Cement Company Ltd.
Wednesday, September 28, 2011 10:51 AM
We expect FCCL to yield FY12 EPS in the range of Re 0.7/sh with a DCF target price of Rs8/sh to Rs9/sh on account of increase in cement prices in the Northern zone and the commencement of the German Cement Plant. We maintain BUY for FCCL.
Research Analyst: Ms. Gulshan D. Ferozepurwalla
FFBL - Fauji Fertilizer Bin Qasim
Monday, September 26, 2011 12:24 PM
We have upgraded FFBL EPS by Rs0.95/sh and expect it to yield a revised EPS of Rs9.06/sh and potential PE of 4.9x (3-year avg. PE 5x), on account of less decline in Urea and DAP sales than expected. We expect the company to give a dividend of Rs10.7/sh (payout ratio can exceed above 100%) in CY11 and yield a DCF fair value of Rs68.2/sh(an obvious upgrade from Rs64.7 from the last published report). We reiterate ‘BUY’ for FFBL as it has a 32% appreciation margin.
Research Analyst: Ms. Gulshan D. Ferozepurwalla
APL - Attock Petroleum Ltd
Friday, August 12, 2011 12:37 PM
The company that gained from the gas curtailment was Attock Petroleum (APL) whose sales increased by 26% to 139,000 tons owing to greater inventories of petrol. We cover APL with target price of Rs401/sh.
Ms. Gulshan D. Ferozepurwalla
PSO - Pakistan State Oil Co. Ltd.
Friday, August 12, 2011 12:36 PM
PSO has not reaped the benefits of gas curtailments as it maintains low levels of petrol and high levels of high speed diesel and furnace oil. We cover PSO with target price of Rs312/sh respectively.
Ms. Gulshan D. Ferozepurwalla
ENGRO - Engro Corporation (Pak) Limited
Thursday, July 07, 2011 12:01 PM
ENGRO has been facing gas and gearing issues which it aims to resolve through gains on IPOs of its subsidiaries and cash inflows from EnVen plant operations. Even some company partners are ready to convert debt into equity. ENGRO is not expected to be jolted by gas shortages as it will pass on the impact to the consumers through increased product prices. On the legal front ENGRO has won its case in the court and thus it is an obligation onto the government to resume its gas supply for EnVen that has been currently operating at an average capacity of 80%. ENGRO is yielding CY11 expected PE of 7.8x which is considered to be the lowest for a highly geared company like ENGRO
Ms. Gulshan D. Ferozepurwalla
LUCK - Lucky Cement Limited
Wednesday, June 22, 2011 4:45 PM
Lucky Cement is available at a lower FY11 and FY12 PE of 6x and 4x respectively. We also expect LUCK to pay FY11 final cash dividend of Rs4/sh. BUY
Research Analyst:Ms. Gulshan D. Ferozepurwalla
HBL - Habib Bank Limited
Wednesday, June 22, 2011 4:42 PM
HBL earnings propensity is going up. HBL is still in search of true price discovery. Rural based branches of HBL are the biggest trigger. HBL is currently yielding PBV of 1.5x and has the potential to touch target PBV of 2.5x. BUY
Head of Research: Mr. Faisal Shajji
FCCL - Fauji Cement Company Ltd.
Wednesday, June 01, 2011 2:30 PM
We expect Fauji Cement will tend to benefit the most from the construction of the Diamer Bhasha dam because it has a greater proximity to the area of construction and always gets orders for Chinese undertakings (Chinese engineers are likely to complete this marvel). We anticipate FCCL to increase its earnings as the new German plant will also commence its cement section by the end of FY11 thereby almost doubling the capacity of Fauji. We expect the cost of production to decrease on account of the Refused Derived Fuel (RDF) which is expected to show results in the coming years. We yield DCF of Rs8/sh for FCCL with FY12 expected PE of 10.6x. BUY FCCL
Ms. Gulshan D. Ferozepurwalla
PSO - Pakistan State Oil Co. Ltd.
Wednesday, June 01, 2011 1:43 PM
PSO appears attractive based on low PEG of 0.11. We have already given a DCF valuation of Rs 311/sh. Increase in international oil prices is a catalyst behind PSO inventory gains. BUY PSO.
Ms. Gulshan D. Ferozepurwalla