STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated January  17, 2004

 

On Friday the KSE-100 index closed at 4,684 and market capitalization crossed one trillion rupee mark. A point worth mentioning is that during the week the index closed with gains each day. Renewed buying interest in fertilizer, banking and cement sectors, at the back of expected results, kept the market vibrant. Formal trading in OGDC shares and its inclusion in COT eligible securities is expected to keep day traders' interest live.

 

 

 

 

On Friday Road Show of SSGC was held and Minister for Privatization and Investment made it a point to attend the show. As against the general perception, the shares of SSGC will be offered after Eid holiday to facilitate unsuccessful applicants of a fund. However, one may wonder why at all the hype was created and what could be the possible motive?

AZAM TEXTILE MILLS

There seems to be some thing grossly wrong with the operation of company. Sales for the period ending September 30, 2003 amounted to Rs 736 million, out of which Rs 731 was eaten up cost of goods sold and pathetically low gross Rs 5.3 million emerged as gross profit. The company had posted Rs 39 million gross profit for the year 2002. Sales went up from Rs 541 million. As a result the company posted Rs 55.6 million loss after tax for the year 2003. The company had posted Rs 22.7 million loss last year. As on September 30, 2003 accumulated losses crossed Rs 222 million level.

DEWAN TEXTILE MILLS

The company has posted Rs 19.4 million profit after tax for the year ending September 30, 2003 as compared to Rs 12.8 million profit for last year. About 50% increase in profit can be attributed to increase in local as well as export sales, decrease in operating expenses and financial charges. Net sales went up from Rs 2,183.5 million to Rs 2,574.6 million. As against this cost of goods sold hiked from Rs 1,816.4 million to Rs 2,267 million. Operating expenses came down from Rs 116.6 million to Rs 99.4 million. Financial charges declined from Rs 219.4 million to Rs 173.6 million. The company had distributed 5% dividend among the shareholders for the year 2002. However, the Board of Directors chose not to pay even this meager amount for the year under review. The company had issued 10% bonus shares for the year 2003 and also preferred to issue 10% bonus shares based on the earnings of year 2003.

 

 

DEWAN MUSHTAQ TEXTILE MILLS

The company has posted Rs 3.7 million profit after tax for the year ending September 30, 2003 as compared to Rs 3.5 million profit for last year. It is evident that bulk of company's operating profit goes towards financial charges. For the year 2002 out of Rs 74.7 million operating profit an amount of Rs 67.4 million was eaten up by financial charges. Similarly, out of Rs 73.4 operating profit for the year 2003 an amount of Rs 52.8 million went towards financial charges.

DAWOOD FIBRE MILLS

Dawood Fibre Mills (Formerly Aisha Cotton Mills) managed to bring down its loss but it may take ages to wipe out huge accumulated loss. As on September 30, 2003 accumulated losses were as high as Rs 614 million. Despite lower sales for the year ending September 30, 2003. The company succeeded in bring down loss to the half of the loss posted for the year 2002. Sales came down from Rs 427 million for the year 2002 to Rs 258 million for the year 2003. Despite decline in sales gross profit improved from Rs 15.6 million to Rs 21.9 million. Operating expenses declined from Rs 28 million to Rs 12 million. However, financial charges went up from Rs 16 million to Rs 24 million.

HASEEB WAQAS SUGAR MILLS

The company has posted Rs 15 million loss after tax for the year ending September 30, 2003 as against Rs 82 million profit for last year. The decline in operating profit, leading to massive deterioration in bottom line, was contained by reduction in operating expenses and financial charges. Sales came down from Rs 1,606 million to Rs 1,385 million. Operating profit plunged from Rs 288 million to Rs 127 million. Operating expenses declined from Rs 53 million to Rs 29 million. Financial charges came down from 150 million to Rs 114 million.

COLONY TEXTILE MILLS

The company has posted Rs 35 million profit after tax for the year ending September 30, 2003 as compared to Rs 48 million for last year. The hike in cost of goods sold, operating expenses and financial charges eroded the benefit of increase in sales. Sales went up from Rs 1,421.3 million to Rs 2,284.6 million. Cost of goods sold went up from Rs 1,276.3 million to Rs 2,068.3 million. Gross profit shot up from Rs 145 million to Rs 216 million. Administrative and selling expenses went up from Rs 19 million to Rs 32 million. Financial charges sky rocketed from Rs 86 million to Rs 152 million. The company does not carry any load of accumulated losses but it neither declared any dividend for the year 2002 nor for the year under review. Rather, unappropriated profit almost touched Rs 196 million level as on September 30, 2003.

Company High  Low Closing Week's Turnover

Oil & Gas Deve.

53.90

52.10

52.60

252,610,000

P.T.C.L.A XD

37.65

37.25

37.65

79,881,500

Hub Power XD

38.85

38.55

38.85

54,235,500

D.G.K.Cement

45.50

44.65

45.15

49,308,000

Engro Chem

102.55

97.35

102.55

48,427,800

National Bank

54.90

53.95

54.75

38,368,000

M.Leaf Cem.

33.40

32.50

33.40

31,786,000

Fauji Fert BinX

18.85

18.25

18.85

30,906,500

M.C.B.XD

53.80

52.80

53.75

24,489,900

Fauji Fert.

100.00

99.25

99.50

13,723,400