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Morning Briefing for December 15, 2011 – Standard Capital

Karachi: Cheery pickings

There are fewer days at the exchange where good stocks are available at ‘finger linking’ prices.

According to Standard Capital, this situation is now quite reminiscent to Jan 2009 when key stocks were available at dirt cheap prices.

Now today Standard Capital will highlight some extremely satiating scripts under the garb of low EVEBITDA multiple:

 

 PE exp ROE Di. Yield EV/EBITDA
 X % % X
National Refinery Ltd. 5.8 26.7 10.4 1.2
Lotte Pak Ltd.  2.2 46.7 5.5 1.8
Pakistan State Oil Co. Ltd.  4.1 35.3  4.2   1.8
Fauji Fertilizer Bin Qasim 4.7 53.4 13.6  2.0
J.D.W Sugar Mills Ltd.  2.6 36.4 9.0 2.1
Kot Addu Power  7.5  27.2 15.9 2.2
Attock Refinery Ltd.  2.7 10.3  1.8 2.2
Al-Ghazi Films Ltd. 5.2 30.0 10.0 2.3
Tri-Pack Films Limited 6.4 27.6  6.0 2.4
Indus Motor Company Limited 4.2 19.4 7.5  2.6
Nishat Mills Limited 3.5  13.7 8.0  2.7
Clariant Pakistan Limited 6.6  28.7 8.8 2.7
Pak Suzuki Motor Co. Limited 6.2 1.5 0.8 2.8
Attock Petroleum Ltd. 6.7 36.9 9.8 3.0
Pak Petroleum Ltd.  5.7 33.3 7.0  3.2
Pakistan International Contain  5.6 26.8 6.1 3.2

 

 

Among all stocks there are true manufacturing units such as FFBL offers room for appreciation based on firmed up fundamentals. LOTPTA could also come out of slumber since it is anticipated that its primary margins to rebound with increase anticipated in global oil prices.

With the situation also settling down in Egypt, Standard Capital expects PET related product sales to regain momentum thus ensuring LOTPTA’s local supplies of PTA. LOTPTA yield EV-EBITDA of 1.8x. Among others, CPL also comes to light having niche in four respective segments viz. textile processing chemicals & master batches etc.

Some of the units showing low EV EBITDA are basically companies who’s cash cycle is extremely good. Among them Standard Capital sees APL & PICT.

Standard Capital considers these scripts to be ‘cherry pickings’ at a time when market is showing artificial weakness.

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