The articles written on this blog are based on my personal analysis. The securities target prices are for information only and is not an offer to buy or sell. The reliance on these recommendations are not guaranteed as they are based on my personal assessment as a Financial Analyst. My analysis is based on Business TV Channels, Business/ Financial websites, and from Finance books. All views that I presented are to the best of my knowledge and I invest in Stock Market with this analysis in mind. While the information contained herein is from sources believed reliable, I do not represent that it is accurate or complete and should not be relied upon as such. Opinions expressed may be revised at any time.

Saturday, January 1, 2011


ENGRO has started a trial production of its 1.3mn urea plant from Dec 29, 2010. The plant is expected to start formal production from end February 2011. Since its debt level is very high and facing a gas curtailment issue, many analysts are having a hold stance on it and quoting target prices of 200-225. However, this is for short-medium term only and for long-term most of the analysts have a positive view on ENGRO. Its expected EPS for 2010 is around PKR 18 with a cash dividend of PKR 2 making an accumulated dividend to PKR 6 for year 2010.

Given the fact that foreigners are now leading the market, they usually have a long-term view, and they usually invest in blue chips like ENGRO, I believe ENGRO can give you much more return than expected in the market. It is currently trading at around PKR 192 with P/E of around 10.6. I would recommend a buy.

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