engro equity analysis
TRANSCRIPT
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Principles of Fi
ACF-261
Engro Chemical Pakis
Prepared By:
Section 3
Imaad ud din
Shahan Arshad Khan
Syed Mohammad Ali Sha
Rabia WaheedSilvat Gondal
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nance
an Limited
07 02 0224
07 02 0325
07 02 0375
06 02 0170
06 02 0402
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Engro Chemic al Pakistan Lim ited
Balance Sheet
Rupees in 000's 1983 1984 1985
Cash and bank balances 18,607 45,392 86,348
Net recieveables 10,550 70,262 21,858
Stock in trade 20,376 12,627 15,221
Other current assets 111,269 68,118 65,204
Total current assets 160,802 196,399 188,631
Net Plant Property and Equipm ent 127,641 116,794 105,497
Long term inves tments 0 0 0
Other assets 456 410 1,910
Total long-term assets 128,097 117,204 107,407
TOTAL A SSETS 288,899 313,603 296,038
Creditors accrued and other l iabi l i t ies 99,859 126,941 107,626
Shor t term bor rowings 698 10,990 653
Other current l iabi l i t ies 66,928 49,504 50,253Total current l iabi l i t ies 167,485 187,435 158,532
Total long term l iabi l i t ies 8,821 6,940 1,134
Comm on equity + reserves 104,315 114,105 131,000
Retained earnings 8,278 5,123 5,372
Total shareholders ' equity 112,593 119,228 136,372
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY 288,899 313,603 296,038
Balancing 0 0 0
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1986 1987 1988 1989 1990 1991 1992
133,930 89,635 112,158 201,232 237,536 244,814 364,079
33,596 37,065 37,801 38,179 42,095 40,199 45,207
19,808 42,840 13,748 15,444 39,933 91,444 9,323
133,336 178,486 210,740 222,885 221,673 109,541 106,941
320,670 348,026 374,447 477,740 541,237 485,998 525,550
119,055 137,383 175,741 191,738 275,069 1,473,526 2,706,791
0 0 0 0 0 0 0
3,454 3,840 8,116 2,979 16,609 5,188 10,590
122,509 141,223 183,857 194,717 291,678 1,478,714 2,717,381
443,179 489,249 558,304 672,457 832,915 1,964,712 3,242,931
159,142 156,411 219,624 269,678 408,106 291,548 253,970
0 2,054 265 0 0 33,574 0
86,638 80,924 76,791 120,459 108,786 143,850 178,872245,780 239,389 296,680 390,137 516,892 468,972 432,842
15,162 17,585 26,976 25,675 59,872 1,080,106 1,780,440
179,000 229,000 229,000 254,000 254,000 414,000 1,028,280
3,237 3,275 5,648 2,645 2,151 1,634 1,369
182,237 232,275 234,648 256,645 256,151 415,634 1,029,649
443,179 489,249 558,304 672,457 832,915 1,964,712 3,242,931
0 0 0 0 0 0 0
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1993 1994 1995 1996 1997 1998 1999
497,563 1,020,544 1,030,218 1,298,555 1,334,861 707,098 565,947
75,729 127,958 289,846 475,925 524,182 421,602 317,245
51,708 122,208 124,679 129,967 173,288 442,141 344,138
133,947 335,758 459,844 460,873 509,540 1,225,267 1,572,401
758,947 1,606,468 1,904,587 2,365,320 2,541,871 2,796,108 2,799,731
3,545,986 3,629,606 3,804,306 4,070,094 5,714,362 6,865,533 6,769,197
0 13,591 0 455,000 642,500 1,173,500 1,341,475
9,114 51,278 49,585 17,346 102,403 48,272 176,020
3,555,100 3,694,475 3,853,891 4,542,440 6,459,265 8,087,305 8,286,692
4,314,047 5,300,943 5,758,478 6,907,760 9,001,136 10,883,413 11,086,423
427,801 466,482 589,851 830,713 935,964 1,150,967 1,067,870
0 0 26,831 0 45,701 427,865 448,727
174,179 642,907 855,322 883,923 803,837 748,681 1,027,429601,980 1,109,389 1,472,004 1,714,636 1,785,502 2,327,513 2,544,026
2,482,018 2,030,908 1,693,525 1,786,543 3,263,904 3,939,496 3,603,817
1,228,280 2,152,440 2,592,440 3,404,962 3,949,962 4,613,252 4,933,252
1,769 8,206 509 1,619 1,768 3,152 5,328
1,230,049 2,160,646 2,592,949 3,406,581 3,951,730 4,616,404 4,938,580
4,314,047 5,300,943 5,758,478 6,907,760 9,001,136 10,883,413 11,086,423
0 0 0 0 0 0 0
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2000 2001 2002 2003 2004 2005 2006
508,084 973,412 2,156,541 1,651,068 3,775,958 4,776,698 5,760,668
463,202 683,577 633,072 695,274 594,885 662,107 736,926
368,752 424,870 771,055 385,582 458,081 509,845 567,457
1,765,854 1,928,600 1,847,638 1,492,765 1,638,754 1,638,754 1,638,754
3,105,892 4,010,459 5,408,306 4,224,689 6,467,679 7,587,404 8,703,804
6,899,223 6,861,576 7,194,577 7,095,720 7,839,737 8,667,828 9,589,493
1,341,475 1,340,000 1,340,000 1,424,557 1,424,557 1,424,557 1,424,557
216,120 211,677 340,829 120,031 120,031 120,031 120,031
8,456,818 8,413,253 8,875,406 8,640,308 9,384,325 10,212,416 11,134,081
11,562,710 12,423,712 14,283,712 12,864,997 15,852,004 17,799,820 19,837,885
1,396,479 1,650,593 2,095,963 1,301,570 2,283,719 2,541,779 2,829,000
582,270 582,270 1,121,330 322,635 322,635 322,635 322,635
467,768 1,025,928 1,386,757 1,305,142 2,091,362 2,962,721 3,928,8412,446,517 3,258,791 4,604,050 2,929,347 4,697,716 5,827,135 7,080,476
3,897,592 3,925,034 4,349,386 4,272,111 4,894,220 5,447,266 6,062,807
5,214,604 5,234,604 5,323,640 5,658,640 5,658,640 5,658,640 5,658,640
3,997 5,283 6,636 4,899 601,429 866,778 1,035,962
5,218,601 5,239,887 5,330,276 5,663,539 6,260,069 6,525,418 6,694,602
11,562,710 12,423,712 14,283,712 12,864,997 15,852,004 17,799,820 19,837,885
0 0 0 0 0 0 0
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2007 2008 2009 2010 2011 2012 2013
6,805,646 7,938,866 9,204,410 10,617,562 12,181,540 13,957,685 15,910,777
820,198 912,880 1,016,036 1,130,848 1,258,634 1,400,860 1,559,157
631,580 702,948 782,381 870,790 969,190 1,078,708 1,200,602
1,638,754 1,638,754 1,638,754 1,638,754 1,638,754 1,638,754 1,638,754
9,896,178 11,193,449 12,641,582 14,257,955 16,048,118 18,076,007 20,309,290
10,615,306 11,757,036 13,027,781 14,442,121 16,016,282 17,768,322 19,718,343
1,424,557 1,424,557 1,424,557 1,424,557 1,424,557 1,424,557 1,424,557
120,031 120,031 120,031 120,031 120,031 120,031 120,031
12,159,894 13,301,624 14,572,369 15,986,709 17,560,870 19,312,910 21,262,931
22,056,072 24,495,073 27,213,951 30,244,664 33,608,987 37,388,917 41,572,221
3,148,677 3,504,478 3,900,484 4,341,238 4,831,798 5,377,791 5,985,482
322,635 322,635 322,635 322,635 322,635 322,635 322,635
5,000,428 6,189,402 7,509,027 8,974,066 10,600,951 12,407,971 14,415,4808,471,741 10,016,515 11,732,146 13,637,939 15,755,384 18,108,397 20,723,597
6,747,905 7,510,418 8,359,095 9,303,673 10,354,988 11,525,102 12,827,438
5,658,640 5,658,640 5,658,640 5,658,640 5,658,640 5,658,640 5,658,640
1,177,787 1,309,500 1,464,070 1,644,412 1,839,975 2,096,778 2,362,546
6,836,427 6,968,140 7,122,710 7,303,052 7,498,615 7,755,418 8,021,186
22,056,072 24,495,073 27,213,951 30,244,664 33,608,987 37,388,917 41,572,221
0 0 0 0 0 0 0
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2014
18,096,020
1,735,341
1,336,270
1,638,754
22,806,385
21,888,716
1,424,557
120,031
23,433,304
46,239,689
6,661,841
322,635
16,646,13523,630,611
14,276,939
5,658,640
2,673,499
8,332,139
46,239,689
0
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Engro Chemic al Pakistan Lim ited
Income Statement
Rupees in 000's 1983 1984
Sales 638,122 679,962
Sales Grow th 6.56%
Less: Cost of Goods Sold 381,599 434,171
COGS as a % of Sales 59.80% 63.85%
Gross Prof i t 256,523 245,791
Gross Margin 40.20% 36.15%
Less:Sel l ing and Admin ist rat ive Exp. 127,713 115,735
Sel l ing & Adm inist rat ive expenses as a % of sales 20.01% 17.02%
Add: Other Operat ing Incom e 0 0
Less:Depreciat ion and Amort izat ion 15,772 16,087
Depreciation Rate 12.60%
Operating Pro fit (EBIT) 113,038 113,969
Operat ing Margin 17.71% 16.76%
Add:Other Incom e 3,392 8,240Other Income as a % o f Sales 0.53% 1.21%
Less:Financial Charges 8,657 6,075
Interest Rate 90.94% 33.88%
Less:Other Charges 7,519 8,031
Other Charges as a % of selling & administrative expense 5.89% 6.94%
Pre-tax Incom e(EBT) 100,254 108,103
Less:Provis ion for Taxat ion 47,519 44,058
Tax Rate % 47.40% 40.76%
Net Incom e 52,735 64,045
Net Margin 8.26% 9.42%
Unappropr iate Prof i t broug ht forward 2,343 8,278Prof i t Avai lable for Appro pr iat ion 55,078 72,323
Dividends 46,800 57,200
Pay out Rat io 88.7% 89.3%
Transfer to General Reserve 0 10,000
Transfer to Capital Reserve 0 0
Unappropr iate Prof i t carr ied forward 8,278 5,123
Weighted average number of Shares(000's) 10,400 10,400
Earnings per Share 5.07 6.16
Dividend per share 4.50 5.50
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1985 1986 1987 1988 1989 1990 1991
696,577 754,354 826,303 810,025 936,664 1,276,754 1,543,629
2.44% 8.29% 9.54% -1.97% 15.63% 36.31% 20.90%
427,238 426,903 529,980 533,680 587,287 952,255 986,537
61.33% 56.59% 64.14% 65.88% 62.70% 74.58% 63.91%
269,339 327,451 296,323 276,345 349,377 324,499 557,092
38.67% 43.41% 35.86% 34.12% 37.30% 25.42% 36.09%
113,929 79,792 70,469 73,553 84,187 91,252 111,175
16.36% 10.58% 8.53% 9.08% 8.99% 7.15% 7.20%
0 0 0 0 0 0 0
16,561 16,450 19,454 19,622 14,468 19,897 24,609
14.18% 15.59% 16.34% 14.28% 8.23% 10.38% 8.95%
138,849 231,209 206,400 183,170 250,722 213,350 421,308
19.93% 30.65% 24.98% 22.61% 26.77% 16.71% 27.29%
9,707 13,520 28,407 26,538 26,032 36,839 21,1141.39% 1.79% 3.44% 3.28% 2.78% 2.89% 1.37%
5,359 8,214 1,735 6,129 14,646 4,319 21,718
299.89% 54.17% 8.83% 22.50% 57.04% 7.21% 1.95%
10,063 16,417 15,633 13,417 17,913 16,494 28,077
8.83% 20.57% 22.18% 18.24% 21.28% 18.08% 25.25%
133,134 220,098 217,439 190,162 244,195 229,376 392,627
48,277 106,633 80,041 82,957 102,390 95,086 165,752
36.26% 48.45% 36.81% 43.62% 41.93% 41.45% 42.22%
84,857 113,465 137,398 107,205 141,805 134,290 226,875
12.18% 15.04% 16.63% 13.23% 15.14% 10.52% 14.70%
5,123 5,372 3,237 3,275 5,648 2,645 2,15189,980 118,837 140,635 110,480 147,453 136,935 229,026
62,400 67,600 87,360 104,832 119,808 134,784 67,392
73.5% 59.6% 63.6% 97.8% 84.5% 100.4% 29.7%
22,208 48,000 50,000 0 25,000 0 160,000
0 0 0 0 0 0 0
5,372 3,237 3,275 5,648 2,645 2,151 1,634
10,400 10,400 12,480 14,976 14,976 14,976 14,976
8.16 10.91 11.01 7.16 9.47 8.97 15.15
6.00 6.50 7.00 7.00 8.00 9.00 4.50
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1992 1993 1994 1995 1996 1997 1998
1,874,676 2,324,819 3,567,559 4,520,004 7,168,114 6,658,958 8,365,530
21.45% 24.01% 53.46% 26.70% 58.59% -7.10% 25.63%
1,287,505 1,524,788 1,882,716 2,520,118 4,396,579 3,892,232 4,844,025
68.68% 65.59% 52.77% 55.75% 61.34% 58.45% 57.90%
587,171 800,031 1,684,843 1,999,886 2,771,535 2,766,726 3,521,505
31.32% 34.41% 47.23% 44.25% 38.66% 41.55% 42.10%
129,817 183,418 384,627 484,103 622,559 789,965 983,576
6.92% 7.89% 10.78% 10.71% 8.69% 11.86% 11.76%
0 0 0 0 0 0
29,263 71,369 199,261 213,455 226,276 255,949 307,976
1.99% 2.64% 5.62% 5.88% 5.95% 6.29% 5.39%
428,091 545,244 1,100,955 1,302,328 1,922,700 1,720,812 2,229,953
22.84% 23.45% 30.86% 28.81% 26.82% 25.84% 26.66%
29,722 47,036 47,983 109,677 124,943 104,730 104,5751.59% 2.02% 1.34% 2.43% 1.74% 1.57% 1.25%
11,915 97,914 337,904 326,119 284,586 369,039 404,595
0.67% 3.94% 16.64% 18.96% 15.93% 11.15% 9.26%
30,647 24,718 77,708 92,513 117,959 119,879 122,879
23.61% 13.48% 20.20% 19.11% 18.95% 15.18% 12.49%
415,251 469,648 733,326 993,373 1,645,098 1,336,624 1,807,054
175,636 194,368 132,201 210,631 259,084 134,403 318,849
42.30% 41.39% 18.03% 21.20% 15.75% 10.06% 17.64%
239,615 275,280 601,125 782,742 1,386,014 1,202,221 1,488,205
12.78% 11.84% 16.85% 17.32% 19.34% 18.05% 17.79%
1,634 1,369 1,769 8,206 509 1,619 1,768241,249 276,649 602,894 790,948 1,386,523 1,203,840 1,489,973
74,880 74,880 194,688 350,439 560,701 657,072 806,009
31.3% 27.2% 32.4% 44.8% 40.5% 54.7% 54.2%
165,000 200,000 400,000 440,000 795,000 545,000 595,000
0 0 0 0 29,203 0 85,812
1,369 1,769 8,206 509 1,619 1,768 3,152
37,695 37,440 48,672 58,406 70,087 87,609 120,901
6.36 7.35 12.35 13.40 19.78 13.72 12.31
1.99 2.00 4.00 6.00 8.00 7.50 6.67
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1999 2000 2001 2002 2003 2004 2005
8,628,367 8,393,880 8,220,158 10,893,319 12,173,006 13,983,485 15,563,618
3.14% -2.72% -2.07% 32.52% 11.75% 14.87% 11.30%
4,847,762 5,009,021 5,028,358 6,833,322 7,811,824 8,637,886 9,628,580
56.18% 59.67% 61.17% 62.73% 64.17% 61.77% 61.87%
3,780,605 3,384,859 3,191,800 4,059,997 4,361,182 5,345,598 5,935,038
43.82% 40.33% 38.83% 37.27% 35.83% 38.23% 38.13%
1,368,471 1,074,481 987,386 1,211,941 1,306,584 1,453,210 1,617,423
15.86% 12.80% 12.01% 11.13% 10.73% 10.39% 10.39%
0 70,000 0 10,000 0 0 0
432,016 466,649 468,446 530,958 520,260 502,305 555,363
6.29% 6.89% 6.79% 7.74% 7.23% 6.41% 6.41%
1,980,118 1,913,729 1,735,968 2,327,098 2,534,338 3,390,083 3,762,253
22.95% 22.80% 21.12% 21.36% 20.82% 24.24% 24.17%
142,115 218,886 198,588 231,398 392,093 283,914 315,9971.65% 2.61% 2.42% 2.12% 3.22% 2.03% 2.03%
674,490 683,525 645,795 575,510 371,810 713,559 789,323
16.64% 15.26% 14.33% 10.52% 8.09% 13.68% 13.68%
105,922 99,233 97,500 147,261 231,370 192,470 214,147
7.74% 9.24% 9.87% 12.15% 17.71% 13.24% 13.24%
1,341,821 1,349,857 1,191,261 1,835,725 2,323,251 2,767,968 3,074,780
294,239 223,528 127,201 702,562 766,468 968,789 1,076,173
21.93% 16.56% 10.68% 38.27% 32.99% 35% 35%
1,047,582 1,126,329 1,064,060 1,133,163 1,556,783 1,799,179 1,998,607
12.14% 13.42% 12.94% 10.40% 12.79% 12.87% 12.84%
3,152 5,328 3,997 5,283 6,636 4,899 601,4291,050,734 1,131,657 1,068,057 1,138,446 1,563,419 1,804,078 2,600,036
725,406 846,308 1,042,774 1,042,774 1,223,520 1,202,650 1,733,257
69.2% 75.1% 98.0% 92.0% 78.6% 66.7% 66.7%
320,000 100,000 20,000 (50,000) 335,000 0 0
0 181,352 0 139,036 0 0 0
5,328 3,997 5,283 6,636 4,899 601,429 866,778
120,901 139,036 139,036 152,940 152,940 152,940 152,940
8.66 8.10 7.65 7.41 10.18 11.76 13.07
6.00 6.09 7.50 6.82 8.00 7.86 11.33
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2006 2007 2008 2009 2010 2011 2012
17,322,307 19,279,728 21,458,337 23,883,129 26,581,923 29,585,680 32,928,862
11.30% 11.30% 11.30% 11.30% 11.30% 11.30% 11.30%
10,700,226 11,913,367 13,312,716 14,793,182 16,414,882 18,256,411 20,117,466
61.77% 61.79% 62.04% 61.94% 61.75% 61.71% 61.09%
6,622,082 7,366,361 8,145,621 9,089,947 10,167,040 11,329,269 12,811,395
38.23% 38.21% 37.96% 38.06% 38.25% 38.29% 38.91%
1,800,192 2,003,613 2,230,021 2,482,014 2,762,481 3,074,642 3,422,076
10.39% 10.39% 10.39% 10.39% 10.39% 10.39% 10.39%
0 0 0 0 0 0 0
614,415 680,141 753,293 834,712 925,331 1,026,191 1,138,447
6.41% 6.41% 6.41% 6.41% 6.41% 6.41% 6.41%
4,207,475 4,682,607 5,162,306 5,773,221 6,479,228 7,228,437 8,250,872
24.29% 24.29% 24.06% 24.17% 24.37% 24.43% 25.06%
351,704 391,447 435,681 484,912 539,708 600,694 668,5732.03% 2.03% 2.03% 2.03% 2.03% 2.03% 2.03%
873,529 967,250 1,071,562 1,187,661 1,316,879 1,460,699 1,620,770
13.68% 13.68% 13.68% 13.68% 13.68% 13.68% 13.68%
238,345 265,278 295,255 328,619 365,753 407,083 453,083
13.24% 13.24% 13.24% 13.24% 13.24% 13.24% 13.24%
3,447,305 3,841,526 4,231,170 4,741,854 5,336,304 5,961,350 6,845,592
1,206,557 1,344,534 1,480,910 1,659,649 1,867,706 2,086,472 2,395,957
35% 35% 35% 35% 35% 35% 35%
2,240,749 2,496,992 2,750,261 3,082,205 3,468,597 3,874,877 4,449,635
12.94% 12.95% 12.82% 12.91% 13.05% 13.10% 13.51%
866,778 1,035,962 1,177,787 1,309,500 1,464,070 1,644,412 1,839,9753,107,527 3,532,953 3,928,048 4,391,705 4,932,668 5,519,289 6,289,610
2,071,565 2,355,167 2,618,548 2,927,635 3,288,256 3,679,314 4,192,832
66.7% 66.7% 66.7% 66.7% 66.7% 66.7% 66.7%
0 0 0 0 0 0 0
0 0 0 0 0 0 0
1,035,962 1,177,787 1,309,500 1,464,070 1,644,412 1,839,975 2,096,778
152,940 152,940 152,940 152,940 152,940 152,940 152,940
14.65 16.33 17.98 20.15 22.68 25.34 29.09
13.54 15.40 17.12 19.14 21.50 24.06 27.41
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2013 2014
36,649,823 40,791,253
11.30% 11.30%
22,341,585 24,716,244
60.96% 60.59%
14,308,238 16,075,010
39.04% 39.41%
3,808,771 4,239,162
10.39% 10.39%
0 0
1,263,388 1,402,447
6.41% 6.41%
9,236,079 10,433,400
25.20% 25.58%
744,122 828,2072.03% 2.03%
1,798,930 1,997,222
13.68% 13.68%
504,281 561,265
13.24% 13.24%
7,676,989 8,703,121
2,686,946 3,046,092
35% 35%
4,990,043 5,657,029
13.62% 13.87%
2,096,778 2,362,5467,086,821 8,019,574
4,724,275 5,346,075
66.7% 66.7%
0 0
0 0
2,362,546 2,673,499
152,940 152,940
32.63 36.99
30.89 34.96
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Engro Chemicals Pakistan Limited
Cash Flow Statement
Rupees in 000's 1,993 1,994 1,995
CASH FLOW FROM OPERATING ACTIVITIES
Prof i t before taxat ion469,648 733,326 993,373Depreciat ion 71,369 199,261 213,455
Taxes paid (71,951) (241,044) (197,916)
Provis ions & Others (118,603) 75,588 (66,506)
Change in working capital 59,561 (296,388) (187,372)
Net cash inf low from operat ing act iv i t ies 410,024 470,743 755,034
CASH FLOW FROM INVESTING A CTIVITIES
Net capital expenditure (706,209) (280,372) (386,772)
Income on deposits /bond s 18,784 28,960 84,328
Long term inves tments 1,476 (51,278) 51,278
Net cash (out f low) f rom inv est ing act iv i t ies (685,949) (302,690) (251,166)
CASH FLOW FROM FINANCING ACTIVITIES
Issue of share capital + share premium 0 524,160 0
Net proceeds/(repayments) of lon g-term loans 475,690 (22,885) (237,476)
Dividends paid (66,281) (146,347) (283,549)
Tax paid on bouns sh ares issued 0 0 0
Net cash inf low/(out f low) f rom f inancin g act iv i t ies 409,409 354,928 (521,025)
Net increase/(decrease) in cash & cash equ ivalents 133,484 522,981 (17,157)
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1,996 1,997 1,998 1,999 2,000 2,001 2,002
1,645,098 1,336,624 1,807,054 1,341,821 1,349,857 1,191,261 1,835,725226,276 255,949 307,976 432,016 466,649 468,446 530,958
(219,837) (220,901) (251,884) (102,325) (273,630) (199,488) (288,632)
(57,735) 82,513 (223,244) (276,348) (163,326) (166,928) (246,048)
69,340 (315,699) (667,039) 661,983 274,291 30,196 (32,046)
1,663,142 1,138,486 972,863 2,057,147 1,653,841 1,323,487 1,799,957
(488,914) (1,913,267) (1,428,961) (331,609) (563,478) (425,167) (816,286)
105,957 67,937 55,181 67,875 60,110 47,379 32,815
(455,000) (231,814) (531,000) (171,500) 0 45,000 292,500
(837,957) (2,077,144) (1,904,780) (435,234) (503,368) (332,788) (490,971)
0 0 0 0 0 0 0
(69,062) 1,456,501 546,724 (186,408) (6,372) (120,366) 450,373
(449,274) (527,238) (607,212) (998,082) (750,354) (909,975) (983,149)
(11,681) 0 (17,522) 0 0 0 0
(530,017) 929,263 (78,010) (1,184,490) (756,726) (1,030,341) (532,776)
295,168 (9,395) (1,009,927) 437,423 393,747 (39,642) 776,210
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2003 2004 2005 2006 2007 2008 2009
2,323,251 2,767,968 3,074,780 3,447,305 3,841,526 4,231,170 4,741,854520,260 502,305 555,363 614,415 680,141 753,293 834,712
(450,239) (968,789) (1,076,173) (1,206,557) (1,344,534) (1,480,910) (1,659,649)
(355,888) 0 0 0 0 0 0
(190,856) 864,049 139,075 154,790 172,282 191,750 213,417
1,846,528 3,165,534 2,693,045 3,009,954 3,349,414 3,695,304 4,130,334
(411,631) (744,017) (828,091) (921,665) (1,025,813) (1,141,730) (1,270,746)
367,857 283,914 315,997 351,704 391,447 435,681 484,912
(84,557) 0 0 0 0 0 0
(128,331) (460,102) (512,094) (569,961) (634,366) (706,050) (785,833)
0 0 0 0 0 0 0
(148,875) 622,109 553,047 615,541 685,097 762,513 848,677
(1,258,875) (1,202,650) (1,733,257) (2,071,565) (2,355,167) (2,618,548) (2,927,635)
0 0 0 0 0 0 0
(1,407,750) (580,541) (1,180,211) (1,456,024) (1,670,069) (1,856,034) (2,078,957)
310,447 2,124,890 1,000,740 983,969 1,044,979 1,133,220 1,265,544
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2010 2011 2012 2013 2014
5,336,304 5,961,350 6,845,592 7,676,989 8,703,121925,331 1,026,191 1,138,447 1,263,388 1,402,447
(1,867,706) (2,086,472) (2,395,957) (2,686,946) (3,046,092)
0 0 0 0 0
237,534 264,375 294,249 327,499 364,507
4,631,462 5,165,443 5,882,331 6,580,930 7,423,983
(1,414,340) (1,574,160) (1,752,040) (1,950,021) (2,170,373)
539,708 600,694 668,573 744,122 828,207
0 0 0 0 0
(874,632) (973,466) (1,083,467) (1,205,899) (1,342,166)
0 0 0 0 0
944,578 1,051,315 1,170,114 1,302,336 1,449,501
(3,288,256) (3,679,314) (4,192,832) (4,724,275) (5,346,075)
0 0 0 0 0
(2,343,678) (2,627,999) (3,022,718) (3,421,939) (3,896,574)
1,413,152 1,563,978 1,776,145 1,953,092 2,185,242
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Engro Chemic al Pakistan Lim ited
Rat io Analys is
1983 1984 1985
Prof i tabi l i ty Rat ios
Gross Margin 40.20% 36.15% 38.67%
Operat ing Margin 17.71% 16.76% 19.93%
Net Margin 8.26% 9.42% 12.18%
Liquid i ty Rat ios
Current Rat io 0.96 1.05 1.19
Quick Acid Rat io 0.84 0.98 1.09
Net Working Capital (6,683) 8,964 30,099
Net working Capital to Asset (0.04) 0.05 0.16
Cash rat io 0.11 0.24 0.54
Act iv i ty Rat ios
Inventory Turnover 31.32 53.85 45.76
Inventory Days 11.50 6.69 7.87Receivables Turno ver 60.49 9.68 31.87
Average Col lect ion Per iod 5.95 37.20 11.30
Payables Turnover 6.39 5.36 6.47
Average Payable Per iod 56.34 67.21 55.62
Operat ing Cycle 17.45 43.88 19.16
Net Operating Cycle (38.89) (23.32) (36.46)
Prof i tabi l i ty Rat ios
Return on Assets(ROA) 21.25% 22.36% 30.47%
Return on Investment(ROI) 50.56% 55.58% 65.61%
Return on Equity(ROE) 46.84% 53.72% 62.22%
Return on Equi t y wi th Dupont
Operat ing Margin 17.71% 16.76% 19.93%
Earnings Retent ion 52.60% 59.24% 63.74%
Interest Bu rden 0.887 0.949 0.959
Asset Turnover 2.21 2.17 2.35
Leverage 2.57 2.63 2.17
ROE 46.84% 53.72% 62.22%
Financial Leverage Rat ios
Short - term + Lo ng-term Debt to Ass ets Rat io 0.61 0.62 0.54
Long -term Debt to As sets Rat io 0.03 0.02 0.00
Equity to Lo ng Term Capital rat io 0.93 0.94 0.99
Long -term Debt to Lo ng Term Capital rat io 0.07 0.06 0.01
Long -term Debt to Equity rat io 0.08 0.06 0.01
Interest Coverage Ratio(Times Interest Earned) 13.06 18.76 25.91
Other Rat ios
Degree of Operat ing Leverage(DOL) 17.71% 16.76% 19.93%
Degree of Financ ial Leverage(DFL) 46.65% 56.20% 61.11%
Plowback Rat io 11.25% 10.69% 26.46%
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CAPEX/Sales Ratio
Earnings per share 5.07 6.16 8.16
P/E ratio
Revenue per share 61.36 65.38 66.98
Interest/revenue 1.36% 0.89% 0.77%
Interest/expense 6.03% 4.61% 4.11%
Dividend per Net prof i t 88.75% 89.31% 73.54%Dividend per Share 4.50 5.50 6.00
Equity per share 10.83 11.46 13.11
LT Debt/sales 1.38% 1.02% 0.16%
P/CF
P/BV
P/S
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1986 1987 1988 1989 1990 1991 1992
43.41% 35.86% 34.12% 37.30% 25.42% 36.09% 31.32%
30.65% 24.98% 22.61% 26.77% 16.71% 27.29% 22.84%
15.04% 16.63% 13.23% 15.14% 10.52% 14.70% 12.78%
1.30 1.45 1.26 1.22 1.05 1.04 1.21
1.22 1.27 1.22 1.18 0.97 0.84 1.19
74,890 108,637 77,767 87,603 24,345 17,026 92,708
0.23 0.31 0.21 0.18 0.04 0.04 0.18
0.54 0.37 0.38 0.52 0.46 0.52 0.84
38.08 19.29 58.92 60.65 31.97 16.88 201.08
9.45 18.66 6.11 5.94 11.26 21.33 1.7922.45 22.29 21.43 24.53 30.33 38.40 41.47
16.03 16.15 16.80 14.67 11.87 9.38 8.68
4.74 5.28 3.69 3.47 3.13 5.29 7.38
75.95 68.14 97.61 103.65 115.07 67.99 48.77
25.49 34.81 22.91 20.61 23.13 30.70 10.47
(50.46) (33.33) (74.70) (83.04) (91.94) (37.29) (38.30)
27.46% 28.44% 20.30% 23.27% 16.64% 12.65% 7.76%
61.64% 55.68% 43.32% 55.42% 43.86% 16.62% 8.95%
62.26% 59.15% 45.69% 55.25% 52.43% 54.59% 23.27%
30.65% 24.98% 22.61% 26.77% 16.71% 27.29% 22.84%
51.55% 63.19% 56.38% 58.07% 58.55% 57.78% 57.70%
0.952 1.053 1.038 0.974 1.075 0.932 0.970
1.70 1.69 1.45 1.39 1.53 0.79 0.58
2.43 2.11 2.38 2.62 3.25 4.73 3.15
62.26% 59.15% 45.69% 55.25% 52.43% 54.59% 23.27%
0.59 0.53 0.58 0.62 0.69 0.79 0.68
0.03 0.04 0.05 0.04 0.07 0.55 0.55
0.92 0.93 0.90 0.91 0.81 0.28 0.37
0.08 0.07 0.10 0.09 0.19 0.72 0.63
0.08 0.08 0.11 0.10 0.23 2.60 1.73
28.15 118.96 29.89 17.12 49.40 19.40 35.93
30.65% 24.98% 22.61% 26.77% 16.71% 27.29% 22.84%
49.07% 66.57% 58.53% 56.56% 62.94% 53.85% 55.97%
40.42% 36.42% 2.21% 15.51% -0.37% 70.30% 68.75%
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10.91 11.01 7.16 9.47 8.97 15.15 6.36
72.53 66.21 54.09 62.54 85.25 103.07 49.73
1.09% 0.21% 0.76% 1.56% 0.34% 1.41% 0.64%
8.53% 1.93% 6.58% 14.85% 3.89% 15.99% 7.49%
59.58% 63.58% 97.79% 84.49% 100.37% 29.70% 31.25%6.50 7.00 7.00 8.00 9.00 4.50 1.99
17.52 18.61 15.67 17.14 17.10 27.75 27.32
2.01% 2.13% 3.33% 2.74% 4.69% 69.97% 94.97%
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1993 1994 1995 1996 1997 1998 1999
34.41% 47.23% 44.25% 38.66% 41.55% 42.10% 43.82%
23.45% 30.86% 28.81% 26.82% 25.84% 26.66% 22.95%
11.84% 16.85% 17.32% 19.34% 18.05% 17.79% 12.14%
1.26 1.45 1.29 1.38 1.42 1.20 1.10
1.17 1.34 1.21 1.30 1.33 1.01 0.97
156,967 497,079 432,583 650,684 756,369 468,595 255,705
0.21 0.31 0.23 0.28 0.30 0.17 0.09
0.83 0.92 0.70 0.76 0.75 0.30 0.22
44.96 29.19 36.25 55.15 38.43 18.92 25.07
8.01 12.33 9.93 6.53 9.37 19.03 14.3630.70 27.88 15.59 15.06 12.70 19.84 27.20
11.73 12.91 23.09 23.90 28.34 18.14 13.24
5.43 7.65 7.66 8.63 7.11 7.27 8.08
66.25 47.07 46.98 41.72 50.60 49.53 44.55
19.73 25.24 33.02 30.43 37.71 37.17 27.59
(46.51) (21.83) (13.96) (11.29) (12.89) (12.36) (16.96)
8.65% 17.71% 19.26% 24.18% 17.46% 17.39% 15.53%
10.05% 22.40% 25.87% 32.17% 21.78% 22.12% 20.16%
22.38% 27.82% 30.19% 40.69% 30.42% 32.24% 21.21%
23.45% 30.86% 28.81% 26.82% 25.84% 26.66% 22.95%
58.61% 81.97% 78.80% 84.25% 89.94% 82.36% 78.07%
0.861 0.666 0.763 0.856 0.777 0.810 0.678
0.54 0.67 0.78 1.04 0.74 0.77 0.78
3.51 2.45 2.22 2.03 2.28 2.36 2.24
22.38% 27.82% 30.19% 40.69% 30.42% 32.24% 21.21%
0.71 0.59 0.55 0.51 0.56 0.58 0.55
0.58 0.38 0.29 0.26 0.36 0.36 0.33
0.33 0.52 0.60 0.66 0.55 0.54 0.58
0.67 0.48 0.40 0.34 0.45 0.46 0.42
2.02 0.94 0.65 0.52 0.83 0.85 0.73
5.57 3.26 3.99 6.76 4.66 5.51 2.94
23.45% 30.86% 28.81% 26.82% 25.84% 26.66% 22.95%
50.49% 54.60% 60.10% 72.09% 69.86% 66.74% 52.91%
72.80% 67.61% 55.23% 59.55% 45.35% 45.84% 1.00%
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0.30 0.08 0.09 0.07 0.29 0.17 0.04
7.35 12.35 13.40 19.78 13.72 12.31 8.66
10.28
62.09 73.30 77.39 102.27 76.01 69.19 71.37
4.21% 9.47% 7.22% 3.97% 5.54% 4.84% 7.82%
38.43% 57.87% 46.75% 33.53% 35.28% 31.33% 37.46%
27.20% 32.39% 44.77% 40.45% 54.65% 54.16% 69.25%2.00 4.00 6.00 8.00 7.50 6.67 6.00
32.85 44.39 44.40 48.61 45.11 38.18 40.85
106.76% 56.93% 37.47% 24.92% 49.02% 47.09% 41.77%
0.000203683
1.80408E-05
1.03259E-05
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2000 2001 2002 2003 2004 2005 2006
40.33% 38.83% 37.27% 35.83% 38.23% 38.13% 38.23%
22.80% 21.12% 21.36% 20.82% 24.24% 24.17% 24.29%
13.42% 12.94% 10.40% 12.79% 12.87% 12.84% 12.94%
1.27 1.23 1.17 1.44 1.38 1.30 1.23
1.12 1.10 1.01 1.31 1.28 1.21 1.15
659,375 751,668 804,256 1,295,342 1,769,963 1,760,269 1,623,328
0.21 0.19 0.15 0.31 0.27 0.23 0.19
0.21 0.30 0.47 0.56 0.80 0.82 0.81
22.76 19.35 14.13 31.57 30.53 30.53 30.53
15.82 18.61 25.48 11.40 11.79 11.79 11.7918.12 12.03 17.21 17.51 23.51 23.51 23.51
19.87 29.94 20.92 20.56 15.32 15.32 15.32
6.01 4.98 5.20 9.35 6.12 6.12 6.12
59.89 72.29 69.27 38.49 58.79 58.79 58.79
35.68 48.54 46.40 31.96 27.11 27.11 27.11
(24.21) (23.74) (22.86) (6.53) (31.69) (31.69) (31.69)
15.65% 13.76% 11.96% 14.99% 15.85% 15.66% 15.70%
19.85% 18.66% 17.65% 19.41% 22.53% 23.29% 24.41%
21.58% 20.31% 21.26% 27.49% 28.74% 30.63% 33.47%
22.80% 21.12% 21.36% 20.82% 24.24% 24.17% 24.29%
83.44% 89.32% 61.73% 67.01% 65.00% 65.00% 65.00%
0.705 0.686 0.789 0.917 0.816 0.817 0.819
0.73 0.66 0.76 0.95 0.88 0.87 0.87
2.22 2.37 2.68 2.27 2.53 2.73 2.96
21.58% 20.31% 21.26% 27.49% 28.74% 30.63% 33.47%
0.55 0.58 0.63 0.56 0.61 0.63 0.66
0.34 0.32 0.30 0.33 0.31 0.31 0.31
0.57 0.57 0.55 0.57 0.56 0.55 0.52
0.43 0.43 0.45 0.43 0.44 0.45 0.48
0.75 0.75 0.82 0.75 0.78 0.83 0.91
2.80 2.69 4.04 6.82 4.75 4.77 4.82
22.80% 21.12% 21.36% 20.82% 24.24% 24.17% 24.29%
58.86% 61.29% 48.69% 61.43% 53.07% 53.12% 53.26%
24.86% 2.00% 7.98% 21.41% 33.34% 33.34% 33.34%
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0.07 0.05 0.07 0.03 0.05 0.05 0.05
8.10 7.65 7.41 10.18 11.76 13.07 14.65
137.33 0.00 0.01 0.00
60.37 59.12 71.23 79.59 91.43 101.76 113.26
8.14% 7.86% 5.28% 3.05% 5.10% 5.07% 5.04%
44.35% 44.36% 33.02% 20.35% 36.49% 36.33% 36.18%
75.14% 98.00% 92.02% 78.59% 66.84% 86.72% 92.45%6.09 7.50 6.82 8.00 7.86 11.33 13.54
37.53 37.69 34.85 37.03 40.93 42.67 43.77
46.43% 47.75% 39.93% 35.09% 35.00% 35.00% 35.00%
0.000188393 (0.001488846) 0.000083627 0.000277127 0.000046057
1.42144E-05 1.12638E-05 1.21781E-05 1.51907E-05 1.56335E-05
8.83729E-06 7.18001E-06 5.95893E-06 7.06755E-06 6.99873E-06
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2007 2008 2009 2010 2011 2012 2013
38.21% 37.96% 38.06% 38.25% 38.29% 38.91% 39.04%
24.29% 24.06% 24.17% 24.37% 24.43% 25.06% 25.20%
12.95% 12.82% 12.91% 13.05% 13.10% 13.51% 13.62%
1.17 1.12 1.08 1.05 1.02 1.00 0.98
1.09 1.05 1.01 0.98 0.96 0.94 0.92
1,424,438 1,176,934 909,436 620,016 292,733 (32,390) (414,307)
0.14 0.11 0.07 0.04 0.02 (0.00) (0.02)
0.80 0.79 0.78 0.78 0.77 0.77 0.77
30.53 30.53 30.53 30.53 30.53 30.53 30.53
11.79 11.79 11.79 11.79 11.79 11.79 11.7923.51 23.51 23.51 23.51 23.51 23.51 23.51
15.32 15.32 15.32 15.32 15.32 15.32 15.32
6.12 6.12 6.12 6.12 6.12 6.12 6.12
58.79 58.79 58.79 58.79 58.79 58.79 58.79
27.11 27.11 27.11 27.11 27.11 27.11 27.11
(31.69) (31.69) (31.69) (31.69) (31.69) (31.69) (31.69)
15.71% 15.60% 15.69% 15.82% 15.88% 16.24% 16.33%
25.50% 26.40% 27.58% 28.82% 29.89% 31.48% 32.56%
36.52% 39.47% 43.27% 47.50% 51.67% 57.37% 62.21%
24.29% 24.06% 24.17% 24.37% 24.43% 25.06% 25.20%
65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00%
0.820 0.820 0.821 0.824 0.825 0.830 0.831
0.87 0.88 0.88 0.88 0.88 0.88 0.88
3.23 3.52 3.82 4.14 4.48 4.82 5.18
36.52% 39.47% 43.27% 47.50% 51.67% 57.37% 62.21%
0.69 0.72 0.74 0.76 0.78 0.79 0.81
0.31 0.31 0.31 0.31 0.31 0.31 0.31
0.50 0.48 0.46 0.44 0.42 0.40 0.38
0.50 0.52 0.54 0.56 0.58 0.60 0.62
0.99 1.08 1.17 1.27 1.38 1.49 1.60
4.84 4.82 4.86 4.92 4.95 5.09 5.13
24.29% 24.06% 24.17% 24.37% 24.43% 25.06% 25.20%
53.32% 53.28% 53.39% 53.53% 53.61% 53.93% 54.03%
33.34% 33.34% 33.34% 33.34% 33.34% 33.34% 33.34%
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0.05 0.05 0.05 0.05 0.05 0.05 0.05
16.33 17.98 20.15 22.68 25.34 29.09 32.63
126.06 140.31 156.16 173.81 193.45 215.31 239.64
5.02% 4.99% 4.97% 4.95% 4.94% 4.92% 4.91%
36.04% 35.92% 35.81% 35.71% 35.62% 35.54% 35.47%
94.32% 95.21% 94.99% 94.80% 94.95% 94.23% 94.67%15.40 17.12 19.14 21.50 24.06 27.41 30.89
44.70 45.56 46.57 47.75 49.03 50.71 52.45
35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00%
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2014
39.41%
25.58%
13.87%
0.97
0.91
(824,226)
(0.04)
0.77
30.53
11.7923.51
15.32
6.12
58.79
27.11
(31.69)
16.55%
33.85%
67.89%
25.58%
65.00%
0.834
0.88
5.55
67.89%
0.82
0.31
0.37
0.63
1.71
5.22
25.58%
54.22%
33.34%
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0.05
36.99
266.71
4.90%
35.40%
94.50%34.96
54.48
35.00%
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2004 2005 2006 2007
GDP (in billions) 3,641.40 3,859.88 4,091.48 4,336.97
GDP growth rate 6% 6% 6% 6%
agricultural contribution rate 24% 24% 24% 24%
agriculture contribution to GDP 873.936 926.37 981.95 1,040.87
Agriculture growth rate 6% 6% 6% 6%
Fertilizer consumption in Pakistan
Urea consumption in tonnes (000's) 4,500 4,770 5,056 5,360
Urea consumption growth rate 6% 6% 6% 6%
price of urea per ton 7528 7,904 8,300 8,715
inflation 5% 5% 5% 5%
Sales from Urea (000's) 33,876,000 37,703,988 41,964,539 46,706,532
Engro Urea Market Share 21% 21% 21% 21%
Engro Urea Sales (000's) 7,113,960 7,917,837 8,812,553 9,808,372
DAP consumption in tonnes (000's) 1,200 1,272 1,348 1,429
DAP consumption growth rate 6% 6% 6% 6%price of DAP per ton 18,085 18,989 19,939 20,936
inflation 5% 5% 5% 5%
Sales from DAP (000's) 21,702,000 24,154,326 26,883,765 29,921,630
Engro DAP Market Share 27% 27% 27% 27%
Engro DAP Sales (000's) 5,859,540 6,521,668 7,258,617 8,078,840
Engro NPK production in tonnes (000's) 86 91 97 102
Engro NPK production growth rate 6% 6% 6% 6%
Engro NPK price (per ton) 11,686 12,270 12,884 13,528
inflation 5% 5% 5% 5%
Engro NPK Sales (000's) 1,004,996 1,118,561 1,244,958 1,385,638
seed consumption in tonnes (000's) 0.5 0.53 0.56 0.60
seed consumption growth rate 6% 6% 6% 6%
price of seeds per ton 249,425 261,896 274,991 288,741
inflation 5% 5% 5% 5%
Sales from seeds (000's) 124,713 138,805 154,490 171,947
Engro Seed market share 4% 4% 4% 4%
Engro seed sales (000's) 4,989 5,552 6,180 6,878
Total Engro Sales (000's) 13,983,485 15,563,618 17,322,307 19,279,728
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2008 2009 2010 2011 2012 2013 2014
4,597.18 4,873.01 5,165.40 5,475.32 5,803.84 6,152.07 6,521.19
6% 6% 6% 6% 6% 6% 6%
24% 24% 24% 24% 24% 24% 24%
1,103.32 1,169.52 1,239.69 1,314.08 1,392.92 1,476.50 1,565.09
6% 6% 6% 6% 6% 6% 6%
5,681 6,022 6,383 6,766 7,172 7,603 8,059
6% 6% 6% 6% 6% 6% 6%
9,150 9,608 10,088 10,593 11,122 11,678 12,262
5% 5% 5% 5% 5% 5% 5%
51,984,370 57,858,603 64,396,626 71,673,444 79,772,543 88,786,841 98,819,754
21% 21% 21% 21% 21% 21% 21%
10,916,718 12,150,307 13,523,291 15,051,423 16,752,234 18,645,237 20,752,148
1,515 1,606 1,702 1,804 1,913 2,027 2,149
6% 6% 6% 6% 6% 6% 6%21,982 23,082 24,236 25,447 26,720 28,056 29,459
5% 5% 5% 5% 5% 5% 5%
33,302,774 37,065,988 41,254,445 45,916,197 51,104,727 56,879,561 63,306,952
27% 27% 27% 27% 27% 27% 27%
8,991,749 10,007,817 11,138,700 12,397,373 13,798,276 15,357,482 17,092,877
109 115 122 129 137 145 154
6% 6% 6% 6% 6% 6% 6%
14,204 14,915 15,660 16,443 17,266 18,129 19,035
5% 5% 5% 5% 5% 5% 5%
1,542,215 1,716,486 1,910,448 2,126,329 2,366,604 2,634,031 2,931,676
0.63 0.67 0.71 0.75 0.80 0.84 0.90
6% 6% 6% 6% 6% 6% 6%
303,178 318,337 334,253 350,966 368,514 386,940 406,287
5% 5% 5% 5% 5% 5% 5%
191,377 213,003 237,072 263,862 293,678 326,864 363,799
4% 4% 4% 4% 4% 4% 4%
7,655 8,520 9,483 10,554 11,747 13,075 14,552
21,458,337 23,883,129 26,581,923 29,585,680 32,928,862 36,649,823 40,791,253
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Date Engro Chemical KSE-100 % Change in KSE-100 % Change in Share price
2005
Feb 1 122.95 6,869.28 10.43% -3.95%
Jan 3 128 6,220.28 11.87% 14.90%
2004 Dec 1 111.4 5,560.50 5.98% 14.20%
Nov 1 97.55 5,246.91 0.02% 7.20%
Oct 1 91 5,245.82 -1.40% -4.41%Sept 1 95.2 5,320.38 2.18% 1.55%
Aug 2 93.75 5,206.83 -2.63% -5.02%
Jul 2 98.7 5,347.72 -1.94% 1.18%
Jun 1 97.55 5,453.57 -1.31% -2.74%
May 4 100.3 5,525.69 7.48% -2.53%
Apr 1 102.9 5,141.08 5.92% 7.64%
Mar 3 95.6 4,853.83 -0.71% -1.39%
Feb 6 96.95 4,888.45 9.29% 3.69%
Jan 1 93.5 4,473.02 4.93% 5.35%
2003 Dec 1 88.75 4,263.06 12.38% 9.23%
Nov 11 81.25 3,793.56 -6.74% -2.40%
Oct 2 83.25 4,067.82 -10.07% -14.00%Sept 2 96.8 4,523.52 12.54% 4.20%
Aug 1 92.9 4,019.52 17.10% 8.28%
Jul 1 85.8 3,432.55 10.59% 5.41%
Jun 2 81.4 3,103.90 6.13% 2.58%
May 2 79.35 2,924.57 8.07% 0.44%
Apr 2 79 2,706.15 7.36% -12.27%
Mar 3 90.05 2,520.57 1.99% 7.91%
Feb 3 83.45 2,471.48 -7.31% -7.69%
Jan 1 90.4 2,666.53 15.63% 23.50%
2002 Dec 2 73.2 2,306.17 0.50% -2.53%
Nov 1 75.1 2,294.62 14.42% 19.78%
Oct 3 62.7 2,005.44 2.71% 1.70%
Sept 2 61.65 1,952.57 9.49% 4.05%
Aug 1 59.25 1,783.30 -0.10% -2.39%
Jul 2 60.7 1,785.14 8.34% 4.21%
Jun 3 58.25 1,647.68 -13.08% -9.83%
May 3 64.6 1,895.66 2.64% -10.90%
Apr 3 72.5 1,846.84 4.08% -2.03%
Mar 1 74 1,774.51 6.20% 17.46%
Feb 1 63 1,670.89 26.39% 16.67%
Jan 1 54 1,322.06 -2.44% -2.26%
2001 Dec 4 55.25 1,355.06 -1.65% -1.95%
Nov 1 56.35 1,377.86 25.64% 29.10%
Oct 1 43.65 1,096.70 -12.23% -18.18%
Sept 5 53.35 1,249.56 0.16% 5.54%Aug 3 50.55 1,247.51 -6.52% -7.33%
Jul 4 54.55 1,334.48 -3.43% -5.13%
Jun 1 57.5 1,381.83 0.28% -8.73%
May 4 63 1,378.01 2.99% 8.71%
Apr 6 57.95 1,338.01 -6.15% -8.67%
Mar 1 63.45 1,425.76 -2.22% -21.57%
Feb 1 80.9 1,458.09 -3.94% 12.75%
Jan 1 71.75 1,517.94 18.51% 32.38%
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2000 Dec 2 54.2 1,280.80 -13.84% -3.64%
Nov 2 56.25 1,486.48 -6.07% 2.09%
Oct 2 55.1 1,582.54 4.50% 3.67%
Sept 1 53.15 1,514.38 -3.36% 2.51%
Aug 1 51.85 1,566.96 3.11% -12.12%
Jul 3 59 1,519.63 4.98% -3.99%
Jun 2 61.45 1,447.56 -24.64% -24.83%May 2 81.75 1,920.88 -3.84% -7.31%
Apr 3 88.2 1,997.69 6.57% -8.13%
Mar 1 96 1,874.48 6.49% -9.43%
Feb 1 106 1,760.29 20.81% -16.67%
Jan 3 127.2 1,457.07 16.08% 11.87%
1999 Dec 1 113.7 1,255.21 4.84% 7.77%
Nov 1 105.5 1,197.25 -0.07% 27.72%
Oct 1 82.6 1,198.09 -1.12% 10.21%
Sept 1 74.95 1,211.70 -4.72% -0.40%
Aug 2 75.25 1,271.70 19.29% 4.37%
Jul 1 72.1 1,066.10 -9.65% -3.35%
Jun 1 74.6 1,179.94 5.43% -14.89%May 3 87.65 1,119.21 5.72% -16.44%
Apr 1 104.9 1,058.68 13.53% 6.88%
Mar 1 98.15 932.48 2.74% 11.85%
Feb 1 87.75 907.59 -4.71% -4.62%
Jan 2 92 952.41 -10.27% 27.16%
1998 Dec 1 72.35 1,061.45 23.86% 39.67%
Nov 2 51.8 857 -22.42% -19.63%
Oct 1 64.45 1,104.68 13.12% -2.57%
Sept 1 66.15 976.54 12.88% 8.00%
Aug 3 61.25 865.13 0.23% 18.93%
Jul 1 51.5 863.16
Slope
-20.0
-10.0
0.0
10.0
20.0
30.0
40.0
50.0
-30.00% -20.00% -10.00%
ChangeinShareP
rices
Beta C
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-30.0
Chang
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2004 Yearly average share price 97.87
2003 Yearly average share price 86.03
2002 Yearly average share price 64.91
2001 Yearly average share price 59.02
2000 Yearly average share price 74.18
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1999 Yearly average share price 89.10
1998 Yearly average share price 61.25
0.675083915
0%
0%
0%
0%
0%
0%
0%
0%
0.00% 10.00% 20.00% 30.00%
lculation
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0%
in KSE Index
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Computation of market risk
2005 % change in KSE index
Jan 11.87% average monthly market risk 3.04%
2004 Dec 5.98%
Nov 0.02% average yearly market risk 36.50%
Oct -1.40%Sept 2.18%
Aug -2.63%
Jul -1.94%
Jun -1.31%
May 7.48%
Apr 5.92%
Mar -0.71%
Feb 9.29%
Jan 4.93%
2003 Dec 12.38%
Nov -6.74%
Oct -10.07%Sept 12.54%
Aug 17.10%
Jul 10.59%
Jun 6.13%
May 8.07%
Apr 7.36%
Mar 1.99%
Feb -7.31%
Jan 15.63%
2002 Dec 0.50%
Nov 14.42%
Oct 2.71%
Sept 9.49%
Aug -0.10%
Jul 8.34%
Jun -13.08%
May 2.64%
Apr 4.08%
Mar 6.20%
Feb 26.39%
Jan -2.44%
2001 Dec -1.65%
Nov 25.64%
Oct -12.23%
Sept 0.16%Aug -6.52%
Jul -3.43%
Jun 0.28%
May 2.99%
Apr -6.15%
Mar -2.22%
Feb -3.94%
Jan 18.51%
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2000 Dec -13.84%
Nov -6.07%
Oct 4.50%
Sept -3.36%
Aug 3.11%
Jul 4.98%
Jun -24.64%May -3.84%
Apr 6.57%
Mar 6.49%
Feb 20.81%
Jan 16.08%
1999 Dec 4.84%
Nov -0.07%
Oct -1.12%
Sept -4.72%
Aug 19.29%
Jul -9.65%
Jun 5.43%May 5.72%
Apr 13.53%
Mar 2.74%
Feb -4.71%
Jan -10.27%
1998 Dec 23.86%
Nov -22.42%
Oct 13.12%
Sept 12.88%
Aug 0.23%
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Computation of risk free rate
2005 Date 6- month
Feb 2 4.79% average 6-monthly risk free rate 7.46%
Jan 5 4.16%
2004 Nov 10 3.73% average yearly risk free rate 14.92%
Oct 13 3.19%Sept 15 3.01%
Aug 18 2.62%
Jul 21 2.52%
2003 Jun 26 1.66%
May 28 1.80%
Apr 2 1.64%
Mar 6 2.09%
Feb 6 3.19%
Jan 9 3.84%
2002 Dec 12 4.32%
Nov 14 6.36%
Oct 17 6.34%Sept 5 6.39%
Aug 8 6.40%
Jul 11 6.27%
Jun 13 6.42%
May 2 6.38%
Apr 4 6.48%
Mar 7 6.47%
Feb 7 5.65%
Jan 10 7.77%
2001Dec 13 8.14%
Nov 1 8.50%
Oct 4 10.40%
Sept 6 10.49%
Aug 9 11.36%
Jul 12 12.56%
2000 Dec 1 10.96%
Nov 1 10.92%
Oct 2 11.06%
Sept 2 8.14%
Aug 1 7.38%
Jul 5 7.23%
Apr 19 7.13%
Mar 31 8.90%
1999 Sept 24 9.43%
Jun 30 13.17%Mar 26 11.35%
Jan 4 11.94%
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0
5,000,00010,000,00015,000,00020,000,00025,000,00030,000,00035,000,00040,000,000
45,000,000
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
Sales
(Rs000)
Years
Sales
0.00
5.0010.00
15.00
20.00
25.00
30.00
35.00
40.00
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
(Rs/Share)
Years
Earning Per Share
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0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Ratio
Years
Profitability Rati
(0.20)
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
Ratio
Liquidity
Current Ratio Quick Aci
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0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
ROA,ROI,ROE(%)
R
Return on Assets
0.00
0.50
1.00
1.50
2.00
2.50
3.00
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
Ratios
Financial Lev
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Total Debt to Asset Ratio
Equity to Long Term Capital Ratio
Long Term Debt to Equity Ratio
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.0090.00
100.00
110.00
120.00
130.00
140.00
150.00
160.00
170.00
180.00
190.00
200.00
Inventory Turnover
20.00
40.00
60.00
80.00
100.00
120.00
140.00
NimberofD
ays
Activity
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.
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
Inventory Days Averag
(100.00)
(80.00)
(60.00)
(40.00)
(20.00)
0.00
20.00
40.00
60.00
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
Operating
Operating Cycle
1.50
2.00
2.50
Asset Tur
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0.00
0.50
1.00
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
%
Years
Operating Margin Earnings Retention
Asset Turnover Leverage
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2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Sales
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
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2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
s
Gross Margin
Operating Margin
Net Margin
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Years
Ratios
id Ratio Net working Capital to Asset
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1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Years
turns
Return on Investment Return on Equity
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Years
erage Ratios
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Long Term Debt To Asset Ratio
Long Term Debt to Long Term Capital Ratio
Years
urnover
Recievables Turnover Payables Turnover
Ratios
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1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Years
Collection Period Averge Payable Period
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Years
ycles
Net Operating Cycle
nover
Asset Turnover
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0.00
1.00
2.00
3.00
4.00
5.00
6.00
ratios
Interest Burden
ROE
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Engro Chemic al Pakistan Lim ited
Valuat ion
Years 2004 2005 2006 2007
DIVIDEND DISCOUNT MODEL
sustainable growth rate (g) 5.88%
beta 0.68 0.68 0.68 0.68
Market risk premium 21.58% 21.58% 21.58% 21.58%
risk free rate 3.32% 3.32% 3.32% 3.32%
required rate of return 17.89% 17.89% 17.89% 17.89%
dividends paid 1,202,650 1,733,257 2,071,565 2,355,167
Present value of dividends 1,470,238 1,490,554 1,437,459
Pv of all dividends at 2004 21,749,965
total number of shares 152,940 152,940 152,940 152,940
Price Per Share 142
FREE CASH FLOW MODEL
Free cash flow (CFO - CAPEX) 2,421,517 1,864,954 2,088,289 2,323,601
Free cash flow to firm 2,885,330 2,378,013 2,656,083 2,952,313
After tax cost of debt(rd) 8.89% 8.89% 8.89% 8.89%
equity (E) 6,260,069 6,525,418 6,694,602 6,836,427
total debt (short term and long term) (D) 5,216,855 5,769,901 6,385,442 7,070,540
D+E 11,476,923 12,295,320 13,080,044 13,906,966
WACC 13.80% 13.67% 13.50% 13.32%
Present Value 2,095,219 2,343,980 2,609,713
Present Value of free Cash flow to firm 72,217,871
Price of Share 472
Free Cash Flow to Equity 3,043,625 2,418,001 2,703,830 3,008,698
Present Value 2,051,073 1,945,488 1,836,337
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Present Value of Free Cash Flow to Equity 23,484,454
Price of Share 154
Price/Earnings
average P/E ratio using past data 8.22 8.22 8.22 8.22expected EPS 11.76 13.07 14.65 16.33
Value 97 107 120 134
Price/Cash Flow
average P/CF using past data (0.0001328) (0.0001328) (0.0001328) (0.0001328)
Price (282) (133) (131) (139)
Price/Book Value
average P/BV using past data 1.92 1.92 1.92 1.92
Price 71 71 71 71
Price/Sales
P/S 7.7819E-06 7.7819E-06 7.7819E-06 7.7819E-06
Price 109 121 135 150
Present Value of Operating Cash Flow
Operating Cash Flow 3,165,534 2,693,045 3,009,954 3,349,414
Present Value 2,369,236 2,336,631 2,313,448
Present Value of Operating Cash Flow 42,372,089
Price of Share 277
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2008 2009 2010 2011 2012 2013 2014
0.68 0.68 0.68 0.68 0.68 0.68 0.68
21.58% 21.58% 21.58% 21.58% 21.58% 21.58% 21.58%
3.32% 3.32% 3.32% 3.32% 3.32% 3.32% 3.32%
17.89% 17.89% 17.89% 17.89% 17.89% 17.89% 17.89%
2,618,548 2,927,635 3,288,256 3,679,314 4,192,832 4,724,275 5,346,075
1,355,685 1,285,701 1,224,935 1,162,623 1,123,839 1,074,129 1,031,053
9,093,748
152,940 152,940 152,940 152,940 152,940 152,940 152,940
2,553,574 2,859,589 3,217,122 3,591,282 4,130,290 4,630,909 5,253,609
3,250,089 3,631,568 4,073,094 4,540,737 5,183,791 5,800,214 6,551,803
8.89% 8.89% 8.89% 8.89% 8.89% 8.89% 8.89%
6,968,140 7,122,710 7,303,052 7,498,615 7,755,418 8,021,186 8,332,139
7,833,053 8,681,730 9,626,308 10,677,623 11,847,737 13,150,073 14,599,574
14,801,193 15,804,440 16,929,360 18,176,238 19,603,155 21,171,259 22,931,713
13.13% 12.95% 12.77% 12.60% 12.45% 12.30% 12.16%
2,877,534 3,220,235 3,617,185 4,037,947 4,615,983 5,171,318 6,551,803
3,316,087 3,708,266 4,161,700 4,642,597 5,300,404 5,933,246 6,703,110
1,716,818 1,628,523 1,550,309 1,467,010 1,420,711 1,349,006 1,292,773
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8.22 8.22 8.22 8.22 8.22 8.22 8.2217.98 20.15 22.68 25.34 29.09 32.63 36.99
148 166 187 208 239 268 304
(0.0001328) (0.0001328) (0.0001328) (0.0001328) (0.0001328) (0.0001328) (0.0001328)
(150) (168) (188) (208) (236) (259) (290)
1.92 1.92 1.92 1.92 1.92 1.92 1.92
71 71 71 71 71 71 71
7.7819E-06 7.7819E-06 7.7819E-06 7.7819E-06 7.7819E-06 7.7819E-06 7.7819E-06
167 186 207 230 256 285 317
3,695,304 4,130,334 4,631,462 5,165,443 5,882,331 6,580,930 7,423,983
2,256,167 2,247,044 2,251,531 2,250,257 2,300,506 2,316,527 2,356,185
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Perpetuity value
5,660,657
47,151,652
110,522,196
35,076,953
37,469,364
7,226,405
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61,046,313
19,374,558