Scribd Logo
Upload

Welcome to Scribd!

  • Morning Briefing Ghani Gases LTD Good Option For Islamic Mutual Funds

    Uploaded by

    khurram200
    20 views1 page
    GGL has recently come up with many developments which include initial setup of storage capacity at Port Qasim thus targeting potential market in Karachi and enhancement of fleet of mobile tankers. It has recently finalized a contract for the purchase of standby compressor which will ensure continuous supply of product.

    Original Description:

    Original Title

    Morning Briefing Ghani Gases Ltd Good Option for Islamic Mutual Funds

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    GGL has recently come up with many developments which include initial setup of storage capacity at Port Qasim thus targeting potential market in Karachi and enhancement of fleet of mobile tankers. It has recently finalized a contract for the purchase of standby compressor which will ensure continuous supply of product.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    20 views1 page

    Morning Briefing Ghani Gases LTD Good Option For Islamic Mutual Funds

    Uploaded by

    khurram200
    GGL has recently come up with many developments which include initial setup of storage capacity at Port Qasim thus targeting potential market in Karachi and enhancement of fleet of mobile tankers. It has recently finalized a contract for the purchase of standby compressor which will ensure continuous supply of product.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    July7,2011

    GhaniGasesLtd:GoodoptionforIslamicmutualfunds

    FIPIUpdate*July6,2011

    (USDmn)

    GrossBuy

    1.71

    WelikeGhaniGasesLtd(GGL)whichisinagrowingphase.Wehavepreparedamodel
    onGGLwhereinweassumeannualsalesgrowthintherangeof15%25%atthe

    pretextthatthecompanyisgettingmanyordersfromPakistaniindustrialconcerns

    suchassteel,fertilizer,glassandPTAfactories.

    GrossSell

    1.50

    NetBuy/(Sell)

    0.21

    AssuminggrowthinthesaleweseeearningpropensityinGGL.Weexpectitwillyield

    FY11EPSofRs.1.22/shwhichisgoodomenconsideringthefactthethecompanyis
    nd

    yearofoperations.WeconsiderGGLavalueproposition.
    onlyinits2

    **SourceSBPwebsite

    *SourceNCCPLwebsite
    TotalForeignportfolioupdate**

    2,822

    KSE100Index
    KSE100Index(July6,2011)

    12,533.53

    ProfitandLossa/c

    Change

    (42.93)

    Rs .000

    FY09A

    FY10A

    FY11E

    FY12E

    FY13E

    Volume(mn)

    68.50

    NetSal es

    25,651

    270,617

    452,499

    545,562

    631,181

    KSEMarketCapitalization(bn)

    3,297.45

    Gros
    s Margi n

    1,910

    25,508

    164,357

    213,343

    268,640

    KSEMarketCapitalization(USD)

    38.34

    PBIT

    (36,366)

    (27,987) 162,340

    233,891

    303,763

    SCRA(July4,2011)(USD)

    (1.97)

    PAT

    (38,368)

    (64,204)

    88,689

    133,541

    188,778

    EPSRs /s h.

    (0.79) (0.89) 1.22

    1.84

    2.61

    Ratios

    GPmargi n

    7.4%

    9.4%

    36.3%

    39.1%

    42.6%

    Netma rgins

    150%

    24%

    20%

    24%

    30%

    P.Ex

    N/m

    N/m

    10.76

    7.15

    5.05

    Source:GGLfinancialreportsandscstraderesearch

    GGLmanagementbeingexponentsofShariahcompliance,prefertouseIslamic
    financing(Ijarahfinancing)tofulfillthefinancialneedsandensureallthebusiness

    transactioninaccordancewiththeSHARIAcompliance.WeconsiderGGLtobeone

    goodinvestmentoptionavailabletocountrysIslamicmutualfundindustry.

    GGLhasrecentlycomeupwithmanydevelopmentswhichincludeinitialsetupof
    storagecapacityatPortQasimthustargetingpotentialmarketinKarachiand

    enhancementoffleetofmobiletankers.Moreover,ithasrecentlyfinalizedacontract
    forthepurchaseofstandbycompressorwhichwillensurecontinuoussupplyof

    product.

    WithLiquidOxygenandnitrogengascurrentlytakingamajorportionofsalesof
    about6065%and3035%respectively,GGLhasenteredanewmarketofCalcium
    Carbidewhichwillfurtheraddtotheearninggrowthbyforming2530%partintotal
    salesincomingyears(currentlycontributing35%intotalsales).
    WeexpectGGLtoyieldFY12P.Eof7.15xgivenincreasingpropensityofearnings.We
    maintainBUYratingsonthestock.Wealsoexpectatokendividendroundthecorner
    attheaftermathofFY11results.

    Analyst:ZainSaleem

    GDRUpdate

    (USD)

    MCB(1GDR=2Shares)

    2.60

    OGDC(1GDR=10Shares)

    16.25

    UBL(1GDR=4Shares)

    2.00

    LUCK(1GDR=4Shares)

    1.70

    HUBC(1GDR=25Shares)

    11.35

    KeyFinancialMarketUpdate
    CPIInflation%(July10Jun2011

    13.92

    FXReservesJune25,2011(USD)

    17.47

    CurrentA/C(Jul10May11)

    $205mn

    TradeBalance(July10May11)(USD)

    (14.11)

    6MonthsKIBOR%July5,2011
    PKRUSDparityJuly5,2011

    13.78
    86.06

    VolumeLeadersJuly6,2011

    Vol(mn)

    LOTPTA

    11.02

    DSFL

    6.09

    NBP

    5.29

    NICL

    4.63

    BAFL

    3.46

    TradingSignalsgeneratedonJuly6,2011
    GGL

    Buy

    RMPL
    ATLH

    Buy
    Sell

    PAKRI

    Sell

    PICT

    Sell

    Disclaimer: This report has been prepared by Standard Capital Securities (Pvt) Ltd and is provided for information purposes only. The information and data on which this report is based are obtained from
    sources which we believe to be reliable but we do not guarantee that it is accurate or complete. Standard Capital Securities (Pvt) Ltd accepts no responsibility whatsoever for any direct or indirect
    consequential loss arising from any use of this report or its contents. Investors are advised to take professional advice before making investments and Standard Capital Securities (Pvt) Ltd does not take
    Any responsibility and shall not be held liable for undue reliance on this report. This report may not be reproduced, distributed or published by any recipient for any purpose.

    www.scstrade.com | info@scstrade.com | 111-111-721

    You might also like