Morning Briefing for July 24, 2012 – Standard Capital

Karachi, July 24, 2012 (PPI-OT): The “hangover” of court case given reluctance of government officials to write letter to Swiss Courts is now taking its toll on KSE. However, Standard Capital feels these moments are rear opportunities for investors to accumulate ‘top picks’.

Symbol EPS DPS PE   
FY11AFY12EFY13EFY11AFY12EFY13EFY11AFY12EFY13E 
LUCK

12.28

22.50

25.33

4

8

10

10.5

5.7

5.1

PPL

21.92

34.40

39.80

12

15

15

8.2

5.7

4.9

FCCL

0.32

0.60

2.01

N/P

0.25

0.5

13.3

9.7

2.9

CY11ACY12ECY13ECY11ACY12ECY13ECY11ACY12ECY13E

EFOODS

1.19

4.90

6.60

N/P

1

1.5

56.4

13.7

10.2

FATIMA

2.06

4.90

5.50

1.5

1

1

12.0

5.0

4.5

UBL

12.66

15.90

16.40

7.5

7.5

7.5

7.2

5.7

5.5

HBL

17.11

18.83

19.11

7

8

10

6.6

6.0

5.7

BAFI

2.60

3.80

4.18

1.75

2.5

3

6.9

4.7

4.3

Source: Standard Capital and scstrade research team

Not paid

Standard Capital’s picks have grown to size on average 6% with LUCK and UBL outperforming by 13% and 16% respectively when Standard Capital last presented this ‘universe sheet’ on June 23, 2012.

Standard Capital remains upbeat on LUCK given increased demand from Indian markets wherein Standard Capital expects above 13% earnings growth in FY13. Fauji Cement (FCCL) is another company which is pursuing record sales given commissioning of German plant since June 2012. Hence Standard Capital sees FY13 to be the year of FCCL. Standard Capital maintains Standard Capital’s earnings forecast for EFOODS given propensity of increased earnings in coming quarters. The company adds array of product line wherein Standard Capital expects dairies consumption to increase in Ramadan.

Div. yield   
 FY11AFY12EFY13E
LUCK

3%

6%

2%

PPL

6%

8%

8%

FCCL

N/P

4%

9%

 CY11ACY12ECY13E
EFOODS

N/P

1%

2%

FATIMA

6%

4%

4%

UBL

8%

8%

8%

HBL

6%

7%

9%

BAFL

10%

14%

17%

Banking sector continues to inspire with UBL, HBL and BAFL being Standard Capital’s top picks. BAFL offers value investment with satiating dividend yield anticipation of 14% in CY12.