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Security analysis
Security analysis
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Security analysis

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  • 1. Presenter : Muhammad Faisal ShaikhStudent ID : SP11-MB-0101Financial Analysis of the Company
  • 2. Atlas Honda Intro• Atlas Honda Limited (AHL) is a joint venture between the Atlas Group and Honda Motor Co.Ltd., Japan. The company was created by the merger of Panjdarya Limited and Atlas AutosLtd. in 1988. Both these motorcycle manufacturing concerns were established by the AtlasGroup.• Annual Production Capacity• 1,200,000• Authorized Capital• 1 Billion (rupees)• Paid Up Capital• 625.52 Million• Karachi Plant• Company mother plant is based in the city of lights and provincial capital of Sindh, TheKarachi city. In 1964, production began with 7 motorcycles per day. Now plant production hasreached to 400 units in a day. Plant manufactures CD 70 only.• Sheikhupura Plant• Another plant is situated in Sheikhupura city, Punjab. The plant manufactures all four modelsi.e. CD 70, CD 100, CG 125 and CG 125 Deluxe.
  • 3. Analysis of the Financial StatementsBalance SheetAssets 2011 2010 2009 2008 2007 2006--------------- Rupees in ‘ 000 ‘ ----------------------Non Current AssetsProperty, plant and equipment 3,259,193 3,224,897 3,412,901 3,376,605 3,566,931 3,598,732Intangible assets 7,137 8,053 16,601 14,813 24,324 29,090Long-term investments - available for sale - - - - 51,761 -Long-term loans and advances 22,403 18,810 14,359 14,043 12,943 17,097Long-term deposits 10,765 11,336 8,964 13,503 15,900 11,027Total Non-Current Assets 3,299,498 3,263,096 3,452,825 3,418,964 3,671,859 3,655,946Current AssetsStores, spares and loose tools 325,891 322,592 428,188 417,564 407,730 379,380Stock-in-trade 2,003,029 1,664,297 1,792,036 1,862,069 1,580,925 1,937,675Trade debts 401,435 445,689 320,180 407,354 282,249 280,448Loans and advances 33,525 40,485 37,646 39,354 20,553 51,360Trade deposits and prepayments 36,936 39,079 64,637 223,229 5,075 2,998Investments at fair value through profit orloss 1,338,474 1,088,996 455,816 1,377,300 864,989 327,317Accrued mark-up / interest 8,517 4,513 520 812 90 543Other receivables 15,075 11,566 101,071 169,838 45,543 38,075Income tax receivable 68,050 - 91,308 - 138,179 88,892Cash and bank balances 2,090,800 1,641,963 636,426 504,138 919,623 682,088Total Current Assets 6,321,732 5,259,180 3,927,828 5,001,658 4,264,956 3,788,776Total Assets 9,621,230 8,522,276 7,380,653 8,420,622 7,936,815 7,444,722
  • 4. Equity and Liabilities 2011 2010 2009 2008 2007 2006Share Capital and ReservesShare capital 625,522 543,932 472,985 472,985 411,291 357,644Reserves 2,622,118 2,622,118 2,622,118 2,227,118 2,009,004 1,586,118Unappropriated profits 1,374,774 725,774 226,159 704,066 555,526 665,168Total Share Capital and Reserves 4,622,414 3,891,824 3,321,262 3,404,169 2,975,821 2,608,930Long-Term LiabilitiesLong-term borrowings -------- 512,500 375,000 1,268,521 1,109,267 1,590,097Deferred liabilities 649,354 600,015 575,862 697,517 559,487 419,689Total Long-Term Liabilities 649,354 1,112,515 950,862 571,004 1,668,754 2,009,786Current LiabilitiesTrade and other payables 4,255,584 3,109,999 2,646,221 3,247,381 2,796,376 2,369,727Accrued mark-up / interest 6,378 37,384 72,328 49,829 57,035 69,088Short-term finances - - - - - 18,263Current portion of long-term borrowings 87,500 362,500 389,980 436,751 465,829 368,928Provision for taxation - 8,054 - 13,971 - -Total Current Liabilities 4,349,462 3,517,937 3,108,529 3,747,932 3,292,240 2,826,006Total Equity and Liabilities 9,621,230 8,522,276 7,380,653 8,420,622 7,936,815 7,444,722
  • 5. Verical & Horizontal Analysis of the Financial StatementsBalance Sheet<------------Vertical Analysis ----------> <--------------Horizontal Analysis------------->Particulars 2011 2010 2009 2008 2007 20062011vs20102010vs20092009vs20082008vs20072007vs20062006vs2005Assets % % % % % % % % % % % %Non Current AssetsProperty, plant and equipment 33.9 37.8 46.3 40.1 44.9 48.3 1.1 (5.5) 1.1 (5.3) (0.9) 90.5Intangible assets 0.1 0.1 0.2 0.2 0.3 0.4 (11.4) (51.5) 12.1 39.1 16.4 55.4Long-term investments - available for sale 0.0 0.0 0.0 0.0 0.7 0.0 0.0 0.0 0.0 (100.0) 100.0 0.0Long-term loans and advances 0.2 0.2 0.2 0.2 0.2 0.2 19.1 31.0 2.3 8.5 (24.3) 40.5Long-term deposits 0.1 0.1 0.1 0.2 0.2 0.1 (5.0) 26.5 33.6 (15.1) 44.2 90.6Total Non-Current Assets 34.3 38.2 46.8 40.7 46.3 49.0 1.1 (5.5) 1.0 (6.9) 0.4 89.9Current AssetsStores, spares and loose tools 3.4 3.8 5.8 5.0 5.1 5.1 1.0 (24.7) 2.5 2.4 7.5 67.5Stock-in-trade 20.8 19.5 24.4 22.1 19.9 26.0 20.4 (7.1) (3.8) 17.8 (18.4) 23.6Trade debts 4.2 5.2 4.3 4.7 3.6 3.8 (9.9) 39.2 21.4 44.3 0.6 100.7Loans and advances 0.3 0.5 0.5 0.5 0.3 0.7 17.2 7.5 (4.3) 91.5 (60.0) 37.7Trade deposits and prepayments 0.4 0.5 0.9 2.7 0.1 0.0 (5.5) (39.5) (71.3) 4298.6 69.3 (55.9)Investments at fair value through profit orloss 13.9 12.8 6.2 16.4 10.9 4.4 22.9 138.9 (66.9) 59.2 164.3 (20.2)Accrued mark-up / interest 0.1 0.1 0.0 0.0 0.0 0.0 88.7 767.9 (36.0) 802.2 (83.4) (68.7)Other receivables 0.2 0.1 1.3 1.9 0.6 0.5 30.3 (88.6) 40.4 272.9 19.6 (72.3)Income tax receivable 0.7 0.0 1.2 0.0 1.7 1.2 100.0 (100.0) 100.0 (100.0) 55.4 100.0Cash and bank balances 21.7 19.3 8.6 6.0 11.5 9.3 27.3 158.0 26.2 (45.2) 34.8 (52.4)Total Current Assets 65.7 61.8 53.2 59.3 53.7 51.0 20.2 33.9 (21.5) 17.3 12.6 (4.3)Total Assets 100.0 100.0 100.0 100.0 100.0 100.0 12.9 15.5 (12.4) 6.1 6.6 26.5
  • 6. Equity and LiabilitiesShare Capital and ReservesShare capital 6.5 6.4 6.4 5.6 5.2 4.8 15.0 15.0 0.0 15.0 15.0 40.0Reserves 27.3 30.8 35.5 26.4 25.3 21.3 0.0 0.0 17.7 10.9 26.7 31.7Unappropriated profits 14.3 8.5 3.1 8.4 7.0 8.9 89.4 220.9 (67.9) 26.7 (16.5) 7.5Total Share Capital and Reserves 48.1 45.7 45.0 40.4 37.5 35.0 18.8 17.2 (2.4) 14.4 14.1 25.5Long-Term LiabilitiesLong-term borrowings 0.0 6.0 5.1 8.3 14.0 21.4 (100.0) 36.7 (46.2) (37.1) (30.2) 70.4Deferred liabilities 6.7 7.0 7.8 6.8 7.0 5.6 8.2 4.2 0.9 2.1 33.3 118.8Total Long-Term Liabilities 6.7 13.0 12.9 15.1 21.0 27.0 (41.6) 17.0 (25.0) (24.0) (17.0) 78.7Current LiabilitiesTrade and other payables 44.2 36.5 35.8 38.5 34.9 31.9 36.8 17.5 (18.5) 16.5 18.0 1.8Accrued mark-up / interest 0.1 0.4 1.0 0.6 0.7 0.9 (82.9) (48.3) 45.2 (12.6) (17.4) 299.8Short-term finances 0.0 0.0 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.0 (100.0) 100.0Current portion of long-term borrowings 0.9 4.3 5.3 5.2 5.9 5.0 (75.9) (7.0) (10.7) (6.2) 26.3 59.0Provision for taxation 0.0 0.1 0.0 0.2 0.0 0.0 (100.0) 100.0 (100.0) 100.0 0.0 (100.0)Total Current Liabilities 45.2 41.3 42.1 44.5 41.5 38.0 23.6 13.2 (17.1) 13.8 16.5 5.4Total Equity and Liabilities 100.0 100.0 100.0 100.0 100.0 100.0 12.9 15.5 (12.4) 6.1 6.6 26.5
  • 7. Analysis of the Financial StatementsProfit and Loss AccountParticulars 2011 2010 2009 2008 2007 2006Profit and Loss AccountSales 32521399 25554772 13747820 20855535 16608413 17420263Cost of sales (30080978) (23555842) (12782165) (19298994) (15044640) (15790546)Gross profit 2440421 1998930 965655 1556541 1563773 1629717Distribution cost (815463) (690794) (271346) (267483) (371569) (343087)Administrative expenses (310742) (264739) (165648) (227759) (209261) (185232)Other operating income 299337 239047 89744 263870 150681 173035Other operating expenses (109597) (92600) (13849) (68878) (60772) (75762)Profit from operations 1503956 1189844 604556 1256291 1072852 1198671Finance cost (93475) (112613) (251777) (252091) (269337) (151611)Net profit before taxation 1410481 1077231 352779 1004200 803515 1047060Taxation (407925) (364773) (128246) (301191) (249924) (370228)Net profit after taxation 1002556 712458 224533 703009 553591 676832
  • 8. Vertical & Horizontal Analysis of the Financial StatementsProfit and Loss AccountParticlulars 2011 2010 2009 2008 2007 20062011vs20102010vs20092009vs20082008vs20072007vs20062006vs2005% % % % % % % % % % % %Sales 100 100 100 100 100 100 27.3 85.9 -34.1 25.6 -4.7 23.4Cost of sales -92.5 -92.2 -93 -92.5 -90.6 -90.6 27.7 84.3 -33.8 28.3 -4.7 23.6Gross profit 7.5 7.8 7 7.5 9.4 9.4 22.1 107 -38 -0.5 -4 21.2Distribution cost -2.5 -2.7 -2 -1.3 -2.2 -2 18 154.6 1.4 -28 8.3 13.5Administrative expenses -1 -1 -1.2 -1.1 -1.3 -1.1 17.4 59.8 -27.3 8.8 13 29.5Other operating income 0.9 0.9 0.7 1.3 0.9 1 25.2 166.4 -66 75.1 -12.9 0.9Other operating expenses -0.3 -0.4 -0.1 -0.3 -0.4 -0.4 18.4 568.6 -79.9 13.3 -19.8 -21.7Profit from operations 4.6 4.7 4.4 6 6.5 6.9 26.4 96.8 -51.9 17.1 -10.5 23.1Finance cost -0.3 -0.4 -1.8 -1.2 -1.6 -0.9 -17 -55.3 -0.1 -6.4 77.7 122.8Net profit before taxation 4.3 4.2 2.6 4.8 4.8 6 30.9 205.4 -64.9 25 -23.3 15.6Taxation -1.3 -1.4 -0.9 -1.4 -1.5 -2.1 11.8 184.4 -57.4 20.5 -32.5 20Net profit after taxation 3.1 2.8 1.6 3.4 3.3 3.9 40.7 217.3 -68.1 27 -18.2 13.3
  • 9. 6 Years performance Ratio AnalysisParticulars 2011 2010 2009 2008 2007 2006Profitability Ratios9 monthsGross profit margin % 7.5 7.8 7.0 7.5 9.4 9.4Profit before tax margin % 4.3 4.2 2.6 4.8 4.8 6.0Net profit margin % 3.1 2.8 1.6 3.4 3.3 3.9Return on capital employed % 32.2 26.7 14.1 24.6 20.9 24.6Return on equity - before tax % 30.5 27.7 14.2 29.5 27.0 40.1Return on equity - after tax % 21.7 18.3 9.0 20.7 18.6 25.9Return on assets % 10.4 8.4 3.0 8.3 7.0 9.1EBITDA margin % 6.1 6.4 6.2 7.8 9.3 9.1Equity RatioCash dividend per share (declared) Rs. 6.5 5.0 3.0 6.5 6.0 6.0Stock dividend per share (bonus sharesdeclared for the year) Rs. 1.5 1.5 1.5 0.0 1.5 1.5Bonus shares declared for the year in 0009385 8159 7095 0 6169 5365Earnings per share Rs. 16.0 13.1 4.8 14.9 11.7 14.3Price earning ratio Times8.8 10.9 18.7 14.1 13.5 15.5Market price per share as at year end Rs. 141.8 142.5 88.8 210.0 158.0 221.1Market price per share for the yearmaximum value Rs. 172.5 154.2 211.9 237.0 248.9 327.9minimum value Rs. 92.0 56.9 87.4 138.5 108.1 193.1
  • 10. Efficiency RatiosAssets turnover Times 3.4 3.0 1.8 2.4 2.1 2.3Fixed assets turnover Times 10.0 7.9 4.0 6.1 4.6 4.8Inventory turnover Times 12.9 11.9 5.8 8.5 7.6 6.8Debtors turnover Times 81.0 57.3 42.9 51.2 58.9 62.1Creditors turnover Times 7.1 7.6 4.8 6.0 5.4 6.7Capital employed turnover Times 7.0 8.5 3.7 5.1 4.1 4.1Operating CyclePeriod of inventory holding Days 28.0 31.0 48.0 43.0 48.0 54.0Period of collection from debtors Days 5.0 5.0 7.0 6.0 6.0 4.0Period of payments to creditors Days (45.0) (45.0) (64.0) (57.0) (65.0) (54.0)Operating cycle Days (12.0) (9.0) (9.0) (8.0) (11.0) 4.0Liquidity / Leverage RatiosCurrent ratio Times 1.5 1.5 1.3 1.3 1.3 1.3Quick ratio Times 0.9 0.9 0.6 0.8 0.7 0.6Debt to equity Times 0.1 0.2 0.2 0.3 0.5 0.8Total liabilities to equity Times 1.1 1.2 1.3 1.6 1.7 1.9Interest cover Times 18.4 12.0 2.4 5.0 3.1 5.5
  • 11. Profit & Loss Statement for period of 2011-12 ( Forecasted )Particulars % In ThousandSales (12% GM Growth Applied )100% 36,423,967Cost of Sales-92.5 (33,692,169)Gross Profit7.5 2,731,798Distribution Cost-2.5 (910,599)Administration Expense-1 (364,239)Other Operating Income0.9 327,815Operating Expense -0.3 (109,271)Profit from Operation 4.6 1,675,504Finance Cost -0.3 (109,272)EBT 4.3 1,566,232Tax -1.3 (473,511)EAT 3 1,092,721
  • 12. Date Open High Low Close Volume01/03/2012 134.00 134.95 133.75 134.95 198902/03/2012 134.85 137.00 134.85 137.00 395005/03/2012 138.00 142.45 137.00 142.45 89706/03/2012 138.03 141.00 138.03 140.75 198507/03/2012 141.50 142.75 140.00 140.52 264808/03/2012 140.00 140.70 140.00 140.70 23509/03/2012 139.70 141.80 139.70 141.00 159212/03/2012 140.01 141.00 140.01 140.01 56013/03/2012 141.00 141.00 139.50 139.50 150114/03/2012 140.00 146.77 140.00 146.77 748715/03/2012 144.00 149.00 144.00 148.50 67716/03/2012 148.00 148.00 146.10 146.15 42919/03/2012 144.90 145.00 139.26 143.00 256020/03/2012 143.00 143.00 141.00 141.00 115021/03/2012 144.00 144.00 141.50 141.50 50022/03/2012 143.00 143.89 143.00 143.89 11026/03/2012 144.00 145.00 144.00 145.00 50027/03/2012 143.00 144.00 143.00 144.00 25028/03/2012 144.00 144.00 142.00 143.90 79029/03/2012 142.23 144.85 142.23 144.85 4530/03/2012 145.00 145.00 145.00 145.00 125Karachi Stock ExchangeATHL Stock Performance for the month of March 2012
  • 13. Q.1 What will be the price of the share if Cash Dividend 65% and Bonusshare 15% as per last year Dividend ratio with zero growth in dividend?Assume Price of the Market Price is Rs. 130 & 100 Shares lot100 share x 15% Bonus share = 15 Bonus share15 share x 130 Market Price = 1950 Total Bonus Share value100 shares x 10 par value = 10001000 Total par value x 65 % Cash Dividend = 650 Total Cash Dividend
  • 14. Q.2 What will be the price of the share according to P/E Ratio & EPS?EAT 2012 (Forecasted ) is 1,092,718Total No. of Shares (2011) 62,552.215% Bonus share(2012) 9,382.8Total No. of share (Adjusted) 71,935
  • 15. Q3. Dividend Yield after one year previous slide data input on 100 Share lot
  • 16. Thank You

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