Investment Analysis

1. GROUP PRESENTATION BY
 AWAIS AHMED SUBHANI
ROLL #19014954-001
 NOMAN ALI
ROLL #19014954-003
 BILAWAL IKHLAQ
ROLL#19014954-023
 KAMRAN AHMED SHAAD
ROLL#19014954-005
 NOMAN JASIM
ROLL#19014954-006

2.  What do you understand by Small Cap and
Large Cap Companies?
 Categorize small cap
and Large cap companies in Pakistan.
 Elaborate their current earning, dividend and
Share prices in Pakistan Stock Exchange.

3. MARKET CAPITALIZATION - WHAT
IS IT?
Market capitalization, also used in the enterprise
value method of company valuation, is the total value of
outstanding shares of a given company.
This parameter can be used to determine the size of a
company. Potential investors want to know it because,
while it's reasonably easy to calculate, it provides a lot of
information about other characteristics of the enterprise
such as the level of risk.
Using market capitalization also lets investors diversify
their assets by including large-cap, mid-cap, and small-
cap companies in their portfolio.

4. LARGE CAP COMPANIES
 This division is based on the value of the market cap. Large-cap
companies have a market cap of around $10 billion and more.
Usually, this term refers to companies which have been
operating for a long time. They are popular, stable and well-
established on the market, so investing in them is considered
safe - even if short-term returns aren't spectacular, investors can
expect continuing growth of share value.

5. MID CAP COMPANIES
 Mid-cap companies are these with a market cap
between $2 and $10 billion. They are not so well-
established as large-cap companies, so there's more risk
connected with investing in them; however, they are
supposed to grow rapidly in the nearest future

6. SMALL-CAP COMPANIES
 The last group, small-cap companies, includes ones
with a market cap lower than $2 billion. Usually, they
are young or operate in niche markets. The risk here
is the highest among these three groups, but they
might give investors the highest return on investment

7. MARKET CAPITALIZATION
 Market capitalization formula
 The calculation of market capitalization is pretty straightforward. Its
formula consists of two elements:
 •Current price of a single share;
 •Number of outstanding shares of a company (the ones currently
owned by the shareholders).
 The only thing you need to do is multiply the price of one single share
by the number of all outstanding shares a company has. The formula is
as follows:

8. The formula is as follows:
Market capitalization = price of share
* number of outstanding shares

9.  Let's analyze an example of a company that has been on the
market for a few years now. We're aiming to determine whether
it's a large-cap, medium-cap, or a small-cap company.
 Find out how many outstanding shares the company has. Let's
assume it's 10 million shares.
 Determine the current price of one share. We can say the
company sells them at a price of 100$ per share.
 Multiply the number of shares by the price, according to the
market capitalization formula:
 10M * $100 = $100M = $1B
 The market capitalization is equal to $1 billion. We can conclude
that this company is still a small-cap one but probably has some
potential to become a medium-cap business in the foreseeable
future.

10. CATAGORISE COMPANIES
LARGE CAP AND SMAL CAP
BY THEIR MAKET CAPITAL IN
PAKISTAN

11.  The top of the group is the IGI Group, which includes IGI
insurance, IGI Life, Nestle. Tri-Pack Films, and Sanofi-Aventis
with a combined total market cap of Rs677 billion which makes
up 7.4 per cent of KSE.
 Coming in second is the Hussain Dawood Group with a total
combined market cap at Rs442 billion and 4.8 per cent of KSE.
 Fauji Foundation is ranked in the third spot with companies such
as Fauji Fertilizer, Fauji Foods. The Fauji Foundation Group,
according to the report, has a total market capitalisation of Rs432
billion, and a a total KSE share of 4.6 per cent.

12.  Mian Mansha’s Mansha Group follows with a total market
capitalisation at Rs408 billion, and 4.4 per cent share of KSE.
 At number 5 in terms of market capitalization is the Habib
Group which includes companies such as the Indus Motor
Company. Total market capitalization for the group stands at
Rs326 billion and its total share in the stock exchange is at 3.6
per cent.
 Bestway Group, which includes United Bank Limited (UBL)
and Bestway Cement come in next with a market capitalization
of Rs310 billion and a 3.4 per cent share of KSE.

13.  Tabba Group, at number 7 boasts of a total market capitalisation of
Rs298 billion and KSE percentage share of 3.3 per cent. The group
includes companies such as Lucky Cement, ICI Pakistan, and Gadoon
Textiles.
 With a total market capitalization of Rs143 billion, the Atlas
Group which includes companies such as Honda Atlas Cars, Atlas
Honda, Atlas Battery, and Atlas Insurance, has a 1.6 per cent share in
KSE.
 Chinoy Group, Saigol Group, and JS Group come in last in the list of
the 11 groups which own 35 per cent of market capitalisation of
Pakistan’s Stock Exchange with total market caps at Rs90 billion, Rs79
billion, and Rs43 billion respectively, and a respective percentage share
of 1 percent, 0.9 per cent, and 0.5 percent. The Chinoy Group includes
Pakistan Cables, International Industries, and International Steel. The
Saigol Group includes companies such as Pak-Elektron, Maple Leaf
Cement, and Kohinoor Textile Mills. JS Group includes Jahangir
Siddique Company, JS Bank, BankIslami, JS Investments, and JS
Global

14. SHARE PRICE
CURRENT EARNINGS
DIVIDEND YIELD
OF PAKISTANI COMPANIES
TOP IN STOCK EXCHANGE

15. According To Market
Capitalization
Company Share
Price
Current
Earnings
Dividend
Yield
Oil & Gas Development
Company
113.39 5.45 3MN 5.95%
Pakistan Tabaco Company Ltd 1699.98 44.39 9MN 2.95%
Nestle Pakistan Ltd 6700 136.62 9M 2.88%
Pakistan Petroleum Ltd 99.85 5.27 3M 1.00%
MCB Bank Ltd 194.13 19.35 9M 8.76%
Lucky Cement Ltd. 703.15 13.45 3M 0.00%
Habib Bank Ltd 136.28 17.03 9M 3.67%

16. COMPANY SHARE
PRICE
CURRENT
EARNINGS
Dividen
d Yield
Colgate Palmolive Pakistan Ltd 3015.73 22.77 3MN 1.53%
Mari Petroleum Company Ltd. 1393.10 67.96 3MN 0.44%
Engro Corporation Ltd. 312.22 31.66 9MN 7.69%
Meezan Bank Ltd. 114.78 12.76 9MN 4.36%
United Bank Ltd. 131.66 13.47 9MN 9.13%
Fauji Fertilizer Company Ltd. 110.01 12.78 9MN 9.73%
Standard Chartered Bank
Pakistan Ltd.
33.96 13.13 9MN 8.83%

17. COMPANY SHARE
PRICE
CURRENT
EARNINGS
Dividen
d Yield
Pakistan Oilfields Ltd. 420.23 12.78 3MN 11.88%
Pakistan State Oil Company Ltd. 249.54 11.07 3MN 0.00%
The Hub Power Company Ltd. 85.03 6.28 3MN 0.00%
Allied Bank Ltd. 85.00 10.83 9MN 9.41%
Philip Morris (Pakistan) Ltd. 1515.45 29.69 9MN 0.00%
Indus Motor Company Ltd. 1181.73 23.48 9MN 2.54%
National Bank Of Pakistan 42.33 12.28 3MN 0.00 %

18. COMPANY SHARE
PRICE
CURRENT
EARNINGS
Dividend
Yield
Abbott Laboratories (Pak)
Ltd.
749.80 31.72 9M 1.00 %
I.C.I Pakistan Ltd. 739.00 10.66 3M 2.17 %
Atlas Honda Ltd. 520.00 7.14 6M 2.88 %
Frieslandcampina Engro
Pakistan Ltd.
82.86 0.42 9M 0.00 %
Bank Alfalah Ltd. 35.56 4.69 9M 11.25 %
Dawood Hercules Corporation
Ltd.
129.97 11.19 9M 10.00 %
Fatima Fertilizer Company
Ltd.
28.72 4.55 9MN 9.96%