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.

Tuesday, July 19, 2011


During the last few weeks the share price of Engro Corporation has plunged a lot as you can see in graph. On June 1, 2011 the price was 197 and today on 19 July, it closed at 154 which means a decline of 22%. Actually, this plunge is because of gas curtailment issue as government curtailed it’s gas supply to the new urea plant of Engro.

As per my research, this issue is short term and in the medium term should not affect Engro Share price at all, so what it means is that this decline of 22% means that investors can get this share at a very cheap price. Analysts are giving different target prices to it and all above 200 so even if we consider the minimum target price, the upside potential of 33% is there and with the dividend yield of almost 4%, the total expected return is 37%.

Remember this year company earnings is expected to be around PKR 20, so the P/E of share is just 7.5, you can well imagine if the company like Engro is trading at this multiple, how profitable and safe your investment can be at this time.

I believe it's a good opportunity. In fact, a very good opportunity.


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