PSX Announces Top 25 Companies of 2019
Pakistan Stock Exchange (PSX) has announced the recipients of the Top 25 Companies Awards for the year 2019.
The Top 25 Companies Award tradition at PSX goes back to 1978. The best performing listed companies in Pakistan are awarded this distinction. A general definition for ‘well-performing’ may be understood as companies that have outperformed others by the parameters of corporate governance and financial performance, and added value to shareholders based on certain specific quantitative criteria, amongst other factors, make it to the Top 25 Companies List.
This year’s parameters were also re-defined to suit the current times. As per tradition and in line with the evolving business landscape in the country, the criteria for selecting such companies were also updated and upgraded in 2019. The prerequisites to be included in the list for this year were:
- A minimum distribution of 30 percent including at least 15 percent cash dividend.
- Shares being traded for at least half of the total trading days during the year.
- The company not being in the Defaulters’ Segment of the Exchange (or) not having its shares trading suspended because of any violation of Listing Companies and Securities Regulations of the Exchange during 2019.
In 2019, the distribution of marks awarded to the companies was based on the criteria of Capital Efficiency (20.5 percent marks), Dividend Distribution including Bonus (20 percent marks), Growth in Operating Revenue (6 percent marks), Change in EBITDA Margin (6 percent marks), Free-float of Shares (10 percent marks), Turnover of Shares (2.5 percent marks), Corporate Governance and Investor Relation (35 percent marks). This brings the total to 100 percent marks signifying the different criteria for selecting companies for the Top 25 Companies Awards, reported Business Recorder.
The companies that made it to the Top 25 Companies Awards list in 2019, in order of their performance ranking, are:
- Fauji Fertilizer Company Limited
- Nestle Pakistan Limited
- Lucky Cement Limited
- Habib Bank Limited
- Archroma Pakistan Limited
- Engro Fertilizers Limited
- Security Papers Limited
- Bank AL Habib Limited
- United Bank Limited
- Colgate – Palmolive (Pakistan) Limited
- Mari Petroleum Company Limited
- Attock Petroleum Limited
- Dawood Hercules Corporation Limited
- Pakistan Oilfields Limited
- Bata Pakistan Limited
- International Industries Limited
- MCB Bank Limited
- International Steels Limited
- Millat Tractors Limited
- Agriautos Industries Limited
- Engro Corporation Limited
- EFU General Insurance Limited
- ZIL Limited
- AGP Limited
- Gadoon Textile Mills Limited
On the announcement of the Top 25 Companies Awards recipients, the MD and CEO of Pakistan Stock Exchange, Farrukh H. Khan, said that the Top 25 Companies Award is the most prestigious recognition of overall corporate performance in Pakistan. He congratulated the winning companies and said,
They are the leaders and role models for other corporates to emulate. These companies have created tremendous shareholder value, contributed significantly to Pakistan’s economy, and have projected a positive image of Pakistan globally.”
The CEO also said, “I am also excited to share that for the year 2020, PSX has further improved the criteria for the Top 25 Companies award to take into account current trends and developments in the investment industry.” This new criterion includes a focus on total shareholder returns rather than just dividends and reporting on diversity and sustainable development goals (SDGs), amongst other changes.
In the challenging economic environment faced by Pakistan due to the coronavirus pandemic, the recognition of these companies by the Pakistan Stock Exchange will not only bring them the attention of local and foreign investors, analysts, and portfolio managers but will also cast a positive light on Pakistan’s business, economic, and financial sectors, locally as well as globally.