Topic:

Build a portfolio.

Submitted to:

Mr. Nadeem Ahmed

Submitted by:

Rashid Sohail 12-arid-1463

Muhammad Arslan 12-arid-1442
Mansoor Akhtar 12-arid-1432
 Cement limited

Attock cement limited:

The journey of Attock Cement started from the year 1981 and the company started its
commercial production in 1988. In 25 years, company has shown steady growth. ACPL has
attained new peaks every year through strong team work, continuous modernization of plant to
improve efficiency and with utmost hard work. ACPL has cemented its place not only in the
local market but also in the regional markets through selling quality products.

Vision:

To be the leading organization continuously providing high quality cement, excelling in every
aspect of its business and to remain market leader in cement industry.

Mission:

To be a premier and reputable cement manufacturing company dedicated to become an industry

leader by producing quality products, providing excellent services, enhancing customer
satisfaction and maximizing shareholders' value through professionalism and dedicated team
work.

CSR:

We define Corporate Social Responsibility (CSR) as our commitment to work as partners with
all our stakeholders to effectively improve the quality of life of the members of our workforce,
their families and the local communities around our facilities.

CSR is locally managed and specific responsibilities have been assigned for coordinating
local projects, communicating CSR activities internally and to external stakeholders, establishing
stakeholders’ dialogue and relations, as well as participating in corporate monitoring, evaluation
and reporting.
Analysis:

Gross profit:

How much profit is earned on your products without considering indirect costs.
Is your gross profit margin improving? Small changes in gross margin can significantly
affect profitability. Is there enough gross profit to cover your indirect costs? Is there a positive
gross margin on all products? Like in this case it has gross profit of approximately 34%.

ROA:

Measures your ability to turn assets into profit. This is a very useful measure of comparison
within an industry.
A low ratio compared to industry may mean that your competitors have found a way to
operate more efficiently. After tax interest expense can be added back to numerator since ROA
measures profitability on all assets whether or not they are financed by equity or debt.

ROE:

Rate of return on investment by shareholders. This is one of the most important ratios to
investors. Are you making enough profit to compensate for the risk of being in business?
How does this return compare to less risky investments like bonds? Like in this case it is
36.38%.

Account receivable turnover:

Number of times trade receivables turnover during the year. The higher the turnover, the shorter
the time between sales and collecting cash.

Days in account receivable:

The average number of days that it took to collect the average amount of account receivable
during the year. This statistic is only as good as the accounts receivable turnover figure.
Inventory turnover:

The number of times you turn inventory over into sales during the year or how many days it
takes to sell inventory.

Days in inventory:

This is a good indication of production and purchasing efficiency. A high ratio indicates
inventory is selling quickly and that little unused inventory is being stored (or could also mean
inventory shortage). If the ratio is low, it suggests overstocking, obsolete inventory or selling
issues. In this case it is approximately 27 days.

Account Payable turnover:

The number of times trade payables turn over during the year.
The higher the turnover, the shorter the period between purchases and payment. A high turnover
may indicate unfavorable supplier repayment terms. A low turnover may be a sign of cash flow
problems.

Days in account payable:

Compare your days in accounts payable to supplier terms of repayment.

FA turnover:

An increasing ratio indicates you are using your assets more productively.

Current ratio:

Measures your ability to meet short term obligations with short term assets., a useful indicator of
cash flow in the near future. A social enterprise needs to ensure that it can pay its salaries, bills
and expenses on time. Failure to pay loans on time may limit your future access to credit and
therefore your ability to leverage operations and growth.

A ratio less that 1 may indicate liquidity issues. A very high current ratio may mean
there is excess cash that should possibly be invested elsewhere in the business or that there is too
much inventory. Most believe that a ratio between 1.2 and 2.0 is sufficient. The one problem
with the current ratio is that it does not take into account the timing of cash flows. For example,
you may have to pay most of your short term obligations in the next week though inventory on
hand will not be sold for another three weeks or account receivable collections are slow.

Ratios 2015 2014 2013 2012 2011

Gross profit% 33.59 29.52 30.73 27.70 20.23
Operating 24.81 21.24 33.27 19.24 12.38
profit%
Net profit after 16.86 16.05 18.58 13.51 8.00
tax%
ROE% 24.69 23.85 27.24 21.68 11.80

RCE% 36.38 31.55 34.12 30.88 18.26

NO. of days in 27.03 22.46 25.28 25.63 24.26

inventory
NO. of days in 5.39 8.89 8.56 4.19 2.26
receivable
FA turnover 2.18 2.05 1.92 1.94 1.60
ratio(times)
Current 2.75 2.57 2.80 2.52 1.70
ratio(times)
P/E 9.90 8.97 7.07 4.91 6.20

Dividend yield 7.87 8.25 9.85 9.58 9.18

ratio%
Dividend payout 77.88 73.91 69.63 51.23 56.96
ratio%
Dividend cover 1.28 1.35 1.44 1.95 1.76
ratio(times)
Interest coverage 124.88 89.44 180.83 176.54 43.59
ratio(times)
Market price/ 191 158 132 81 49
share
EPS 19.26 17.59 18.67 16.59 7.90
Cash dividend/ 15 13 13 8.5 4.5
share
Bonus share - - 15 15 -
issued%
Breakup value/ 78.02 73.75 79.8 76.55 66.96
share
Quick ratio:

A more stringent liquidity test that indicates if a firm has enough short-term assets (without
selling inventory) to cover its immediate liabilities. This is often referred to as the “acid test”
because it only looks at the company’s most liquid assets only (excludes inventory) that can be
quickly converted to cash).
A ratio of 1:1 means that a social enterprise can pay its bills without having to sell inventory.

Interest coverage ratio:

Measures your ability to meet interest payment obligations with business income. Ratios close to
1 indicates company having difficulty generating enough cash flow to pay interest on its debt.
Ideally, a ratio should be over 1.5.

Earnings per share:

Expresses the corporation’s net income after tax on a per share of common stock basis. The
computation requires the deduction of preferred dividends from the net income if corporation has
preferred stock. Alsop requires the weighted average number of shares of common stock during
the period of the net income.

Dividend yield:

Investors use the dividend yield formula to compute the cash flow they are getting from their
investment in stocks. In other words, investors want to know how much dividends they are
getting for every dollar that the stock is worth.

A company with a high dividend yield pays its investors a large dividend compared to the fair
market value of the stock. This means the investors are getting highly compensated for their
investments compared with lower dividend yielding stocks.

A high or low dividend yield is relative to the industry of the company. As I mentioned above,
tech companies rarely give dividends at all. So even a small dividend might produce a high
dividend yield ratio for the tech industry. Generally, investors want to see a yield as high as
possible.
Dividend payout ratio:

The dividend payout ratio measures the percentage of net income that is distributed to
shareholders in the form of dividends during the year. In other words, this ratio shows the portion
of profits the company decides to keep to fund operations and the portion of profits that is given
to its shareholders.

Investors are particularly interested in the dividend payout ratio because they want to know if
companies are paying out a reasonable portion of net income to investors. For instance, most
start up companies and tech companies rarely give dividends at all. In fact, Apple, a company
formed in the 1970s, just gave its first dividend to shareholders in 2012.

Conversely, some companies want to spur investors' interest so much that they are willing to pay out
unreasonably high dividend percentages. Inventors can see that these dividend rates can't be sustained
very long because the company will eventually need money for its operations.

Kohat cement limited:

Vision

Be the best in the eyes of all stakeholders.

Mission:

Our Mission Is to Provide:

1. Our customers with quality cement at competitive pricing.

2. Our shareholders with good returns and sustainable growth.
3. Our employees with care and career development opportunities.

Incorporation:

State Cement of Pakistan (SCCP) established a 1000 TPD Romanian cement line at Kohat in
1984. The Government of Pakistan in open bidding in 1992 privatized the Company.
Expansion:

The new management headed by Aizaz Sheikh (CEO) undertook an extensive BMR program in
1995 funded by proceeds of a public offering and a commercial debt. The capacity of the Plant
was enhanced to 1,800 TPD by engaging KHD a renowned German Company

KCCL has been in an expansion mode since then and timely converted to coal firing, established
a white cement plant 450 TPD Capacity, set up a new grey cement line of 6,700 TPD capacity
and also established a standby power plant of 22.4 MW capacity.

Listing on stock exchange:

In 1994, KOHC was listed on stock exchanges of Pakistan and an Initial public offer was made
in which 2,193,334 ordinary share were issued to general public at a price of Rs.52/- per share.

Export:

In 2002, KCCL entered into the Export markets in addition to the domestic markets.
Awards:
In recognition of its outstanding performance, Kohat Cement Company Limited has been
honored with the KSE Top 25 Companies Award 2013.

According to ratio analysis Kohat cement is better than Attock cement limited.
 Ratio 2015 2014 2013 2012 2011
Gross profit 38.61 37.65 38.60 30.62 15.24
ratio%
Net profit to 26.64 24.71 23.30 17.82 1.05
sales ratio%
ROE% 30.77 36.74 43.58 44.20 3.03

RCE% 36.57 43.34 47.27 42.16 13.32

Current ratio 2.05 1.89 1.80 0.80 0.70

(times)
Quick 1.71 1.49 1.05 0.22 0.21
ratio(times)
No. of days in 40.60 42.33 55.49 66.26 81.46
inventory
No. of days in 6.46 2.35 0.41 0.18 0.75
receivable
FA turnover 1.92 1.87 1.73 1.41 0.85
ratio(times)
EPS 21.50 20.42 17.04 10.75 0.41

P/E 9.29 6.26 5.04 3.75 14.90

Dividend yield 4.50 1.56 5.83 7.45 -

ratio%
Dividend payout 41.81 9.81 29.34 27.90 -
ratio%
Market value/ 199.85 127.82 85.83 40.26 6.11
share
Interest 50.47 29.30 16.14 4.25 1.18
coverage ratio
Breakup value/ 69.88 55.58 46.92 29.17 16.33
share

Kohat cement limited Ratios

 Lucky cement limited:
Lucky Cement Limited was founded in 1993 by Tabba Memons. The company initially started
with factories in the Pezu district of the North West Frontier Province (N.W.F.P). It now, also,
owns a factory in Karachi.

Ratios 2015 2014 2013 2012 2011

Gross profit% 45.09 43.38 44.32 38.18 33.48

ROE% 20.89 22.78 23.67 20.39 14.30

RCE% 22.70 24.94 25.97 21.85 14.39

Current ratio(times) 3.64 4.32 3.38 2.64 0.88

Quick ratio(times) 2.75 2.62 1.66 0.80 0.18

No. of days in 106.10 107.35 115.14 126.30 128.52

inventory
No. days in 16.80 15.87 131.2 9.15 9.82
receivable
No. days in payables 77.83 57.39 59.93 65.41 74.80

FA turnover ratio 1.28 1.35 1.22 1.07 0.82

EPS 38.44 35.08 30.15 20.97 12.28

P/E(TIMES) 13.52 11.70 6.96 5.50 5.77

Dividend yield 1.73 2.19 3.81 5.20 5.65

Dividend payout 23.41 25.65 26.54 28.61 32.58

Market value/ share 519.62 410.30 209.72 115.39 70.84

Interest coverage 626.74 425.08 163.68 35.58 9.97

Breakup value/ 183.25 153.98 126.90 115.39 70.84

share
Lucky Cement Limited (LCL) is one of the largest producer and leading exporter of quality
cement in Pakistan with the production capacity of 7.75 million tons per annum. The company is
listed on Karachi, Lahore, Islamabad and London Stock Exchanges.

Over the years, the Company has grown substantially and is expanding its business operations
with production facilities at strategic locations in Karachi to cater to the Southern regions, Pezu
and Khyber Pakhtunkhwa to furnish the Northern areas of the country. Lucky Cement is
Pakistan’s first company to export sizeable quantities of loose cement being the only cement
manufacturer to have its own loading and storage terminal at Karachi Port.

Lucky Cement Limited has been sponsored by one of the largest business groups in Pakistan, the
Yunus Brothers Group based in Karachi.

Lucky Cement has a network of over 200 dealers which enables it to dominate the local market
and is Pakistan’s first company to export sizeable quantities of loose cement and is the only
cement manufacturer to have its own loading and storage terminal at Karachi Port.

Vision:

We envision being the leader of the cement industry in Pakistan, identifying and capitalization
on new opportunities in the global market, contributing towards industrial progress and
sustainable future, while being responsible corporate citizens.

Mission:

Our mission is to be a premium cement manufacturer by building a professional organization,

having state of the art technology, identifying new prospects to reach globally and maintain
service and quality standards to cater to the international construction needs with an environment
friendly approach.

According to ratios the Lucky cement is better than the attock and Kohat cement limited.
So we have invest 1.5 million in this lucky cement limited.
 Textile mills

Gul Ahmed:

The Gul Ahmed Group is a Pakistani company that includes Gul Ahmed Textile Mills, Gul
Ahmed Energy and Habib Metropolitan Bank. More recently, a chain of retail outlets has been
founded under the name "Ideas by Gul Ahmed".

Ratios 2015 2014 2013 2012 2011

Gross profit 18.27 18.10 15.71 14.08 18.28
ratio%
ROE% 8.75 20.42 14.36 (5.23) 28.80
RCE% 22.01 30.91 28.65 19.90 40.25
Current ratio 1.05 1.06 1.05 0.99 1.03
Quick ratio 0.24 0.20 0.27 0.24 0.19
Interest 1.59 2.29 1.67 0.98 2.34
coverage ratio
No. of days in 155 145 121 151 134
inventory
Debtor 18 22 28 30 31
turnover(days)
Creditor 118 126 100 86 82
turnover(days)
FA turnover 3.69 4.02 4.24 3.65 3.83
ratio
EPS 2.65 6.75 4.09 (1.73) 9.42
P/E 18.51 9.48 5.81 (12.18) 5.49
Dividend yield 0.03 0.02 - - -
ratio%
Dividend 56.60 22.21 - - -
payout ratio%
Breakup value/ 31.37 36.43 35.63 35.23 37.12
share
Market price/ 49.05 64.01 23.74 21.11 51.73
share
The group's other concerns go by the name of Swisstex Chemicals (Private) Limited, which is a
large chemical distribution company that has the sole rights for supplying Ciba Specialty
Chemicals in Pakistan. The group has invested in outsourcing information technology with
Arwen Technologies.

The Gul Ahmed Group began trading in textiles in the early 20th century. In 1953, the group
decided to enter the field of manufacturing under the name Gul Ahmed Textile Mills Limited,
and was incorporated as a privately limited company. In 1972, it was listed on the Karachi Stock
Exchange. Since then, the company has made rapid progress and is currently one of the leading
composite textile houses in the world.

Vision:

Setting trends globally in the textile industry. Delivering the best products and services to our
customers.

Mission:

To deliver value to our stakeholders through innovative technology, teamwork and by fulfilling
our social and environmental responsibilities.

To deliver value to our stakeholders through innovative technology, teamwork and by fulfilling
our social and environmental responsibilities.

Values:

In achieving its vision and fulfilling its mission, the Company shall operate on the following core
values:

 Integrity
 Passion
 Creativity
 Teamwork
If we analyze the company performance according to ratios as analysis of ratios and their criteria
is explain above the company is performing better.

Ghazi Fabrics:

Ghazi Fabrics International Limited was set up as a vertically composite unit as the first of its
kind and scale in Pakistan.

Over the years, we have established our “PANTHER” brand as a top quality yarn in the Far East
and European markets. We produce A-grade PC (Poly Cotton) and CVC (Chief Value Cotton)
yarns throughout the year in different blend ratios. We can produce carded as well as combed
yarns, both for weaving and hosiery.

Ratios 2015 2014 2013 2012 2011

Gross profit 5.84 9.66 9.91 6.02 12.62
ratio%
Current ratio 0.88 1.07 1.07 0.9 0.9

Quick ratio 0.34 0.34 0.31 0.29 0.24

Debtor turnover 19.59 15.36 18.36 19.51 26.63
ratio(times)
No. of days in 18.25 23.77 19.88 18.70 13.71
receivable
No of days in 62.05 79.73 68.11 70.39 62.19
inventory
No. of days in 18.25 14.06 12.77 17.78 11.26
creditor
EPS (5.61) 0.29 2.09 (4.95) 6.42

Interest coverage 0.13 1.16 1.57 0.10 2.91

ratio

We have also been experimenting with different fibers such as modal, acrylic and nylon from
time to time and have conducted extensive sampling for our buyers.
We also produce core-spun yarns using lycra for our own weaving mill. Over the years we have
carried out a very aggressive BMR (Balancing, Modernization and Replacement) programmed
and have replaced a lot of crucial spinning machinery with latest state-of-the-art technology from
Schlafhorst, RIETER, MURATA and CROSROL. We believe that the only way we can maintain
a competitive edge is by modernizing our facilities constantly and keeping ourselves up to date
with the latest technology.

In our weaving mill, we have replaced all our old PICANOL machines with brand new
TOYOTA machines, which run at high speeds and give us a wide range of weavability and
choice.

Vision:

A modern dynamic industrial unit, which is a true model of socially responsible and
professionally managed successful business enterprises.

Mission:

Ghazi Fabrics International Ltd. strives to excel in the global competitive environment as the
most progressive and quality- oriented company in terms of industry benchmarks, profitability
and stake holder interest.To realize our mission, we firmly believe in continuous process of
balancing, modernization and replacement of our technology, modernization and replacement of
our technology; commitment in developing innovative products, services and human resources;
and the betterment of all those involved directly or indirectly with the company.

If we analyze the performance of ghazi fabrics then its performance as compared to Gul
Ahmed is not good.
Quetta textile mills limited:
CSR:

Quetta Textile Mills Ltd. actively sponsors and participates in several welfare projects as part of
its social responsibilities towards society. Some of the activities we are involved in include:

 Water Filtration Plant in Kotri to provide clean drinking water for the general population
 Entire labour force of the company is provided with free education for their children
 An eye clinic is operated for the welfare of the people at large
 Operating theatre at a neighboring hospital in Kotri
 Dedicated clinic & operating theatre in the earthquake affected Northern areas of Pakistan.

Ratios 2015 2014 2013 2012 2011

Gross profit 6.03 10.05 11.10 13.20 15.99

ratio%
Current ratio 0.84 0.93 0.94 0.91 0.99

Quick ratio 0.11 0.15 0.18 0.14 0.24

No. of days in 11.98 12.19 11.68 11.00 16.75

receivable
ROA% (0.03) 0.02 0.03 0.02 0.09

ROE% (0.15) 0.09 0.11 0.07 0.35

Interest (0.52) 0.36 0.37 0.17 0.79

coverage
ratio
EPS (30.15) 5.44 12.25 2.80 44.91

Breakup 167.85 191.39 186.53 172.21 168.62

value/ share
Dividend nil nil 15 nil 15
Values:

Managing and developing human resources is an integral part of our business. Constant
retraining and essential skill development programs are in place providing our team with
opportunity to adapt to a changing environment.

We are an equal opportunity employer and is constantly looking to recruit highly skilled and
motivated people to be part of a growing team.

According to ratios the performance of Quetta textile is poor according to the rest of the
companies of the same sector so we invest 1.5 million in the Gul Ahmed public limited.

Oil & Gas exploration companies

OGDCL:
Prior to OGDCL's emergence, exploration activities in the country were carried out by Pakistan
Petroleum Ltd. (PPL) and Pakistan Oilfields Ltd. (POL). In 1952, PPL discovered a giant gas
field at Sui in Baluchistan. This discovery generated immense interest in exploration and five
major foreign oil companies entered into concession agreements with the Government.
During the 1950s, these companies carried out extensive geological and geophysical surveys and
drilled 47 exploratory wells. As a result, a few small gas fields were discovered. Despite these
gas discoveries, exploration activity after having reached its peak in mid-1950s, declined in the
late fifties. Private Companies whose main objective was to earn profit were not interested in
developing the gas discoveries especially when infrastructure and demand for gas was non-
existent. With exploration activity at its lowest ebb several foreign exploration contracting
companies terminated their operation and either reduced or relinquished land holdings in 1961.
Initial Successes:
A number of donor agencies such as the World Bank, Canadian International Development
Agency (CIDA) and the Asian Development Bank provided the impetus through assistance for
major development projects in the form of loans and grants. OGDC's concerted efforts were very
successful as they resulted in a number of major oil and gas discoveries between 1968 and 1982.
Toot oil field was discovered in 1968 which paved the way for further exploratory work in the
North. During the period 1970-75, the Company reformed the strategy for updating its
equipment base and undertook a very aggressive work programme. This resulted in discovery of
a number of oil and gas fields in the eighties, thus giving the Company a measure of financial
independence. These include the Thora, Sono, Lashari, Bobi, Tando Alam & Dhodak
oil/condensate fields and Pirkoh, Uch, Loti, Nandpur and Panjpir gas fields which are
commercial discoveries that testify to the professional capabilities of the Corporation.
Vision:
To be a leading multinational Exploration and Production Company.
Mission:
To become the leading provider of oil and gas to the country by increasing exploration and
production both domestically and internationally, utilizing all options including strategic
alliances.
To continuously realign ourselves to meet the expectations of our stakeholders through best
management practices, the use of latest technology, and innovation for sustainable growth, while
being socially responsible.
According to ratios the performance going better and better but in last the company share
price decrease with a huge difference this is because of the decrease in the oil prices
internationally.
Ratio 2015 2014 2013 2012 2011
Gross profit% 63 69 71 70 66
RCE% 21 35 32 42 35
Current 3.56 4.04 2.30 6.67 6.87
ratio(times)
Quick ratio(times) 3.27 3.65 2.01 6.26 6.22
Debtor turnover in 192 111 158 200 189
days
EPS 20.29 28.81 21.22 22.53 14.77
P/E 8.84 9.07 10.78 7.12 10.36
Dividend yield 4 4 4 5 4
ratio%
Dividend payout % 38 32 39 32 37
Market price/ share 179.24 261.28 228.75 160.44 153

Breakup value/ 102.89 92.00 72.60 61.24 46.87

share
Pakistan petroleum limited:

The pioneer of the natural gas industry in the country, Pakistan Petroleum Limited (PPL) has
been a frontline player in the energy sector since the mid-1950s. As a major supplier of natural
gas, PPL today contributes over 20 percent of the country’s total natural gas supplies besides
producing crude oil, Natural Gas Liquid and Liquefied Petroleum Gas.

The company’s history can be traced back to the establishment of a public limited company in
June 1950, with major shareholding by Burmah Oil Company (BOC) of the United Kingdom for
exploration, prospecting, development and production of oil and natural gas resources. In
September 1997, BOC disinvested from the Exploration and Production (E&P) sector worldwide
and sold its equity in PPL to the Government of Pakistan (GoP). Subsequently, the government
reduced its holding through an initial public offer in June 2004, which was further decreased
with the initiation of the Benazir Employees Stock Option Scheme (BESOS) in August 2009
when PPL employees were allotted 12 percent shares from the government’s equity. More
recently, GoP further disinvested its 5 percent shares, around 3.55 percent of the total paid-up
capital, in PPL through Secondary Public Offering in 2014. Currently, the company’s
shareholding is divided between the government, which owns about 68 percent, PPL Employees
Empowerment Trust that has approximately 7 percent being shares transferred to employees
under BESOS — and private investors, who hold nearly 25 percent.

Vision:

To maintain Pakistan Petroleum Limited’s position as the premier producer of hydrocarbons in

the country by exploiting conventional and unconventional oil and gas resources, resulting in
value addition to shareholders’ investment and the nation as a whole.

Mission:

To sustain long term growth by pursuing an aggressive hydrocarbons exploration and production
optimization programme in the most efficient manner through a team of professionals deploying
latest technology, maintaining the highest standards of quality, health, safety &
environment protection and addressing community development needs.
 Ratio 2015 2014 2013 2012 2011
Operating 48 62 58 60 61
profit%
ROE% 18 28 28 33 34

RCE% 22 35 35 44 47

FA turnover 1.18 1.56 1.61 1.87 1.77

Current 4.25 3.81 2.29 4.05 2.94

ratio(times)
Quick 4.08 3.64 2.22 3.95 2.85
ratio(times)
Debtor turnover 151.13 115.15 133.26 125.47 116.42
in days
EPS 17.37 28.08 25.53 31.13 28.31

P/E 9.46 8.80 8.29 8.05 7.87

Market price/ 164.26 224.34 211.58 188.29 207.07

share
Breakup value/ 97.36 92.28 75.75 83.38 47.29
share

According to ratios compared to OGDCL the Pakistan petroleum performance is better.

Mari petroleum limited:

Mari Petroleum Company Limited is one of Pakistan’s largest E&P companies operating the
country’s 2nd largest gas reservoir at Mari Field, District Ghotki, Sindh. The Shares of the
Company are quoted on all the Stock Exchanges of Pakistan. The Company is primarily engaged
in Exploration, development and Production of hydrocarbon potentials (Natural gas, Crude oil,
Condensate & LPG) in the country. MPCL is also exploring opportunities of expanding its
business to become a player in the International hydrocarbon Market.

We focus on perfecting our start by improving field service efficiencies, containing operating
costs, and by making the most of the resources available to us. We strive for a winning finish by
promoting energy conservation, practicing social responsibility, exploiting new energy resources,
and above all creating value for our stakeholders.

In the challenging business environment of today the source of MPCL’s strength and inspiration
for future success has been our human capital. At MPCL we foster value-based HR processes
and practices for development of our human capital and organizational capabilities which has
helped us in achieving competitive edge by realizing personal visions in conjunction with our
corporate vision.

Vision:

MPCL envisions becoming an international Exploration & Production Company by improving

its professional capacity with highly knowledgeable and talented manpower that builds its
underground petroleum reserves by discovering more than the ongoing production within
Pakistan and abroad, and improving financial capacity and profitability through enhanced
production, while taking environmental safeguard and catering the social welfare needs of the
communities inhabiting the area of operations.

Mission:

To enhance Exploration & Production capability by exploiting breakthroughs in knowledge and

innovations in technology and by adopting competitive industrial practices of optimal and cost
effective operations to replenish the produced reserves by at least 50% and to enhance
production for maximizing revenues and return to the stakeholders and to maintain highest
standards of HSE and environmental protection.

As the data of Mari petroleum of 2015 is not available so we compared the 2014 data. According
to this Mari petroleum is better than the rest of the companies. So as currently the oil prices is
going down so we invest only 1 million in Mari petroleum which oil exploration company.

Ratio 2014 2013 2012 2011 2010

Operating 8.87 6.62 6.09 3.64 8.85

profit%
ROE% 49.15 23.44 17.86 9.72 16.17
RCE% 37.37 26.43 24.11 13.08 24.67
Current 1.06 1.08 1.34 1.26 1.33
ratio(times)
Quick 1.02 1.06 1.28 1.21 1.28
ratio(times)
Debtor turnover 2.78 3.27 4.60 4.07 4.55
(times)
No. of days in 131 11 79 90 80
receivable
FA 4.13 4.17 5.22 3.94 2.57
turnover(times)
EPS 51.25 35.77 26.35 12.14 18.78
P/E 9.14 10.44 5.18 7.73 5.72
Dividend yield 0.79 1.01 2.72 3.59 3.11

Dividend payout 77.18 72 67.33 68.22 80.68

Cash dividend/ 3.72 3.78 3.71 3.37 3.34
share
Market value/ 468.60 373.43 136.57 93.81 107.37
share
Breakup value/ 104.27 183.10 147.56 124.91 145.18
share