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Morning Briefing for December 16, 2011 – Standard Capital

Karachi: Cheery pickings Part2

Yesterday Standard Capital came up with few companies showing good fundamentals especially low EV EBITDA scripts.

According to Standard Capital, today Standard Capital would highlight scripts based on key indicators such as cash per share and its relationship with dividend yield.

Have a look at Pakistan’s best scripts based on Standard Capital’s automated analogy:

PE exp ROE DiV. Cash price
Yield per share /Cash

X  %   %  Rs/sh X
National Refinery Ltd. 5.6  26.7 10.8 223.7 1.0
Indus Motor 4.2 19.4 7.6 112.1 1.8
Unilever Pakistan 20.7 91.6 4.6 109.9 48.5
Habib Bank Limited 6.2 17.4 6.0 106.6 1.0
Attock Petroleum Ltd. 6.6 36.9 9.9 87.2 4.8
National Bank 4.4 13.7 18.8 86.4 0.5
Al-Ghazi Tractors Ltd. 5.1 30.0 10.2 27.5 2.7
United Bank Ltd. 4.5 16.3 9.3 70.0 0.8
MCB Bank Limited 5.7 21.3 8.2 56.1 2.5
Nestle Pakistan Limited 20.8 73.7 3.3 50.2 45.7
Bank Alfalah Limited 3.9 4.3 n/m 46.1 0.2
Attock Refinery Ltd. 2.6 10.3 1.9 46.3 2.4
Pakistan Oilfields Ltd. 6.1 32.4 9.9 42.0 8.5
Mari Gas 2.6 16.2 3.8 41.1 2.2
Askari Bank Limited 5.3 5.9 n/m 37.3 0.3
Allied Bank Limited 4.7 22.9 7.1 36.9 1.5
Murree Brewery Company 3.7 12.3 7.6 36.6 1.8
Pak Suzuki Motor Co. Ltd. 6.2 1.5 0.8 35.5 1.9
I.C.I. Pakistan Ltd.  8.1 15.7 14.6 33.6 3.6

Among all the scripts mentioned in above analogy, National Bank (NBP) despite all shenanigans stand out as a dividend payer ostensibly due to government holdings. Government in order to bridge its fiscal constraints shall take more dividends out from NBP and hence it is undervalued based on cash per share as well as price to cash multiple.

If Standard Capital sees these automated results then Standard Capital will find more banks coming and providing options. However, one criticism is valid when recommendations on banks are given i.e. weakening of economic indicators also reflect on banking sector’s underperformance. However, one mid-size bank Bank Alfalah (BAFL) is showing improved fundamentals despite being an earning laggard for quite many years.

Another column added to this list is price to cash multiple which also provide interesting reading. As always lowest is the best.

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