Artistic Denim Mills Limited

TEXTILE COMPOSITE
Artistic Denim Mills is a Market Leader in Sustainable Fiber and Fabric Innovation.
Over the last three decades. It's High-Performance denim products have continuously
Set the Industry standard of best-in-class denim manufacturing. It was incorporated in
Pakistan on May 18, 1992, under the repealed Companies Ordinance, of 1984. The company is
principally engaged in manufacturing and selling rope-dyed denim fabrics, yarn, and value added
textile products.
The company's current share price is Rs. 47.83, and it is a leading company in the entire textile
composite. A book value per share of Rs. 98.44, which is higher than its current market price of
Rs. 47.83. This indicates that the stock is undervalued and it will rise to its fair price shortly
which will be quite favorable for the investors. A dividend yield of 7.32%. This means the
investors will receive Rs. 7.32 in dividends for every Rs.100 they invest in the company.

The Price-to-earnings ratio is 3.79. This ratio is lower than the average P/E ratio for the Pakistan
Stock Exchange (PSX), which is around 10. A lower P/E ratio indicates that the stock is
undervalued. The debt-to-equity ratio is 125.01. This is quite a high debt-to-equity ratio,
meaning the company has a lot of debt relative to its equity, but despite this, the company’s
financial performance is very good.

The company’s profitability ratios seem to be very effective and efficient for the investors. The
net profit margin kept on increasing from 2019-22, but in 2023 the Net profit margin increased to
the highest level of 6.21%. Similarly, the gross profit was slightly fluctuating from 2019-22, but
from 2022-23, the gross profit margin was increasing at an increasing rate to 17.1%. This shows
that the gross profit margin will keep on increasing in the near future.

The Equity ratios are also quite favorable for the investors. The return on equity was the lowest
in 2020, but from 2020 onwards there was a sharp increase in ROE from 2020-23 from 1.72 to
13.11. In the same way, the return on assets was also increasing at an increasing rate. In 2020 the
ROA was the lowest at 1.72, but it took a sharp turn from 2020 onwards from 1.72 to 4.63 in
2023. It was the highest in 2023. The overall financial position is highly favorable for the
purpose of investing in the stocks of Artistic Denim Mills Limited.

https://dps.psx.com.pk/company/ADMM
https://www.admdenim.com/about-us
https://scstrade.com/stockscreening/SS_CompanySnapShot.aspx?symbol=ADMM
https://www.brecorder.com/news/40239840
Engro Corporation Limited
  Diversified Portfolio: Engro Corporation can reduce the risks associated with a single
industry by drawing on its diverse business portfolio, which spans many sectors. Foods,
energy, petrochemicals, fertilizers, and trading are all included in this diversification.
 Market Leadership: Engro is widely regarded as a leader in numerous industries in which
it has a substantial market share. For instance, one of Pakistan's biggest producers of
fertilizers is Engro Fertilizers.
 Stable Income Streams: The company's activities in vital industries, like fertilizers, offer
comparatively steady income streams that act as a buffer against downturns in the
economy.
 Expansion and Growth: Engro has demonstrated a commitment to growth and perhaps
raising shareholder value over time by actively participating in expansion initiatives
and investments in a number of industries.
 Positive Market Reputation: Engro has a solid track record of successful performance and
corporate governance procedures, making it a reputable and well-known brand in
Pakistan's corporate scene that can inspire investor trust.

https://www.engro.com/press-releases/thar-coal-block-ii-mine-power-projects-
complete-1st-year-of-successful-operations/

Thar Block II Coal Mining and Power Project: Engro Corporation has contributed to the
development of the Thar Block II coal mine and power plant project through its subsidiary Sindh
Engro Coal Mining Company (SECMC). By producing electricity from the Thar desert's coal
reserves, this project seeks to meet Pakistan's energy demands and lessen its reliance on foreign
fuel imports.

Abbot Laboratory
The Pakistani pharmaceutical industry is experiencing significant growth, driven by factors like
population expansion, rising disposable incomes, and increased government healthcare spending.
This presents a potentially lucrative opportunity for investors. Abbot Laboratories Pakistan
Limited, a well-established player in this industry, could be a compelling investment option.
However, a thorough analysis is crucial before making any investment decisions.

Factors Favoring Investment in Abbot Laboratories Pakistan

 Industry Growth Potential: The Pakistani pharmaceutical industry is projected for

robust growth in the coming years. This growth can be attributed to several factors:
o Rising Population: Pakistan's population is steadily increasing, leading to a
growing demand for pharmaceuticals.
 o Increased Disposable Incomes: As disposable incomes rise, people are likely to
spend more on healthcare, including prescription drugs.
o Expanding Government Role in Healthcare: The government's focus on
improving healthcare infrastructure and increasing access to medicines can further
stimulate the pharmaceutical industry.

Abbot Laboratories Pakistan, with its established brand presence and product portfolio, is well-
positioned to benefit from this industry upsurge.

 Profitability and Dividend History (if available): Analyzing Abbot Laboratories

Pakistan's financial statements, particularly the income statement, reveals its profitability.
A company with a history of consistent profits and increasing earnings per share (EPS)
suggests a financially sound organization with growth potential. Additionally, a history of
regular dividend payouts seeks to be attractive to income-seeking investors, indicating the
company's confidence in its future cash flows.
 Brand Reputation and Product Portfolio: A strong brand reputation is a valuable asset
in the pharmaceutical industry. Consumers often trust established brands with a proven
track record of quality and efficacy. Investigating Abbot Laboratories Pakistan's brand
recognition and its product portfolio would be beneficial. A company with a diverse
range of well-regarded products across various therapeutic segments is likely to have a
competitive edge.