FINANCE

PRESENTATION
PORTFOLIO ANAYLSIS OF COMPANIES
 PRESENTED BY:

• MEHAK QAMAR
• FAJAR SALEEM
• MAHNOOR ARIF
• AMEER HAMZA
• SALMAN AHMED
• M GHULAM ISHAQ
 INTRODUCTION

The report is written in order to analyze the stock market and to establish an understanding of how does the stock
market functions. Relating the “Risk and Return” lecture studied and discussed upon in class. The idea is to gather
the sample of past 45 days of companies relating from different sectors and study there business portfolios while
applying the studied formulae on the calculations of the risks and returns. This helps us to understand the value of a
business entity in the market. Furthermore, it helps the investors i.e. shareholders to understand what business is
worth the investment and wheat is risk is eligible to take for the organization that they are part of. The companies
that we have selected to study and analyze are:

• Shell

• Thatta Cement

• Engro

• Quice

• Colgate
SHELL PAKISTAN LIMITED
 BRIEF INTRODUCTION

Shell Pakistan is one of the oldest multinational companies in Pakistan and the history of the company in Indo-Pak
subcontinent dates back to 1903 when Shell Transport and Trading Company and Royal Dutch Petroleum Company
decided to merge and supply petroleum to Asia.

The company came to be known as Burma Shell Oil Storage and Distribution Company in
1928 in India with the merger of Royal Dutch Shell Plc and Burma Oil Company.

Later in 1947, the company was named Burma Shell Oil Distribution Company of
Pakistan which became Pakistan Burma Shell (PBS) Limited in 1970 when Pakistani
investors gained 51 percent of the shareholding.

In 1993, the Burma Group divested from PBS and Shell Petroleum jumped in to raise its
stake to 51 percent.

Today, Shell Petroleum is a 76 percent majority stakeholder in Shell Pakistan Limited.

COLGATE – PALMOLIVE
 • Colgate-Palmolive is one of the largest Fast-moving Consumer Goods
(FMCG) producers in the world.

• The company markets its products in over 200 countries and territories
which consist of four core global businesses: Oral Care, Personal Care,
Home Care and Pet Nutrition.

• In 2011, the company has hit net sales of US$ 16. 7b in worldwide which

BRIEF consistently rose at 7. 5% to an all-time record level. (Source: Colgate 2011

financial report) By focusing in Oral Care, the world’s largest toothpaste
INTRODUCTION maker has always been the popular brand among the competitors.

• The small soap and candle business that William Colgate began in New
York City early in the 19th century is now, more than 200 years later, a
truly global company serving hundreds of millions of consumers
worldwide.

• Throughout this history, Colgate people and Colgate values have been at
the heart of our success.
QUICE FOODS LIMITED
 BRIEF INTRODUCTION

The
The company
company was
was listed
listed
Quice
Quice has
has been
been aa prominent
prominent The
The Company
Company was
was with
with Karachi STOCK
Karachi STOCK
Later
Later on
on 13
13 December,
December,
name
name in
in the
the world
world ofof Food
Food established
established on
on 12
12 March
March EXCHANGE
EXCHANGE on on August,
August,
1993
1993 it was converted
it was converted into
into
Products for the last three
Products for the last three 1990 as a Private Limited
1990 as a Private Limited 1994 and with Islamabad
1994 and with Islamabad
aa Public
Public Limited
Limited Company.
Company.
decades.
decades. Company.
Company. Stock
Stock Exchange
Exchange onon July,
July,
1995.
1995.

Quice
Quice Food
Food Industries
Industries Limited
Limited
It Principal
Principal activities
activities of
of the
It owns
owns two
two manufacturing
manufacturing was
was incorporated in
incorporated in Pakistan
Pakistan onon Company are
the
units
units in Hub –– Baluchistan
in Hub 12 Company are manufacturing
manufacturing
Baluchistan 12 March
March 1990
1990 as
as aa Private
Private and
and and sale
sale of
of Jam,
Jam, Jelly,
Jelly, Syrups,
Syrups,
and Mingora
Mingora –– Swat
Swat and
and Limited
Limited Company
Company andand was
was Custard
Custard powder, Pickles,
powder, Pickles,
continued
continued efforts to
efforts to lift
lift up
up converted
converted into
into Public
Public Limited
Limited Essence,
Essence, Juices
Juices and
and Aerated
Aerated
consumer Company
Company on on 13
13 December
consumer delight.
delight. 1993.
December drinks and its AlliedProducts.
drinks and its AlliedProducts.
1993.
ENGRO CORPORATIONS
Envisioning value creation for a multitude of
stakeholders, Engro has invested in a diverse portfolio
of businesses across the verticals of energy and related
infrastructure, agricultural outputs, petrochemicals
and telecommunication infrastructure in over 50
years.

Engro is committed to helping overcome Pakistan’s

energy crisis by using the country’s resources, and BRIEF
strengthen the agricultural-food sector by equipping
our farmers with the right tools and capabilities.
INTRODUCTION

Engro recognizes that social prosperity is imperative

for business growth. Hence, every venture of Engro
operates on an inclusive business growth ideology
wherein its success is integrated with the development
of society.
• Investing today for a better tomorrow for
Pakistan is at the cornerstone of every
business we venture into.

• It is this passion that fuels Engro to step into

unchartered territories, bring sustainable
solutions to the forefront, and become the
leading provider of products and services in
the energy, agricultural, chemicals, and
nutrition sectors.

• From uplifting the agricultural-sector, to

improving the food value chain, to providing
sustainable energy solutions, Engro has left no
stone unturned in its pursuit of uplifting the
entire nation in a timespan of over 50 years.
THATTA CEMENT LIMITED
 Thatta
Thatta Cement
Cement Company
Company Limited
Limited was
was incorporated
incorporated in
in 1980
1980 as
as aa
public
public limited company. It was a wholly owned subsidiary of the
limited company. It was a wholly owned subsidiary of the
State
State Cement
Cement Corporation
Corporation ofof Pakistan
Pakistan (Pvt.)
(Pvt.) Limited.
Limited. The
The
manufacturing
manufacturing facility
facility was
was commissioned
commissioned inin 1982.
1982.

The plant is based on dry process technology, had

a total installed capacity of 1,000 tons per day of
clinker.
BRIEF
INTRODUCTION
The plant was supplied by M/s. Mitsubishi
Corporation, Japan.

In the year 2004, Government of Pakistan divested

its shareholding from the company through
Privatization Commission.
The Company obtained listing on the Karachi Stock
Exchange Limited (Currently “Pakistan Stock Exchange
Limited”) as public limited company in the year 2008.

Share of Thatta Cement Company Limited is quoted on Pakistan

Stock Exchange. Symbol of the Company assigned by Pakistan
Stock Exchange (www.psx.com.pk) is "THCCL".

Thatta Cement Company Limited (the Company) was

incorporated in Pakistan in 1980 as a public limited Company.
The shares of the Company are quoted at the Pakistan Stock
Exchange.

The Company's main business activity is manufacturing and

marketing of cement. The registered office of the Company is
situated at Office No. 606, 607, 608 608A, Continental Trade
Centre, Block 8, Clifton, Karachi.
 SECTION II

CALCULATIONS
• Rate of return: The gain or loss of an investment over a
period of time is referred to as the Rate of Return (ROR). In
other terms, the rate of return is the difference between the
gain (and loss) and the cost of an original investment,
usually stated as a percentage. When the Rate of Return is
positive, the investment has made a profit; when the Rate of
Return is negative, the investment has lost money.

• Standard Deviation: Standard deviation is used in

investing as a measure of market volatility and consequently
risk. The bigger the risk, the more unpredictable the price
movement is and the larger the range is. Range-bound
securities, or those that don't go too far from their targets,
aren't thought to be a big danger.
• That is upon the reason that it is reasonable to suppose that
they'll continue to act in the same manner. A security with a
wide trading range and a propensity to spike, reverse abruptly,
or gap is highly risky, potentially resulting in a bigger loss. But
keep in mind that in the world of investing, risk isn't always a
negative thing. The bigger the potential for reward, the riskier
the security.

• Coefficient of variation: The coefficient of variation measures

how variable data in a sample is in comparison to the
population mean. The coefficient of variation is a financial term
that helps investors to assess how much volatility, or risk, is
taken in relation to the projected return on investments. The
better the risk-return trade-off, the lower the standard deviation
to mean return ratio produced by the coefficient of variation
formula.
 Expected rate of return: The
expected return is the profit or loss
that an investor expects from a
known historical rate of return
investment. It's determined by
multiplying possible outcomes by the
likelihood of them occurring, than
adding the results together.
Beta Portfolio: The overall
systematic risk of a portfolio of
investments is measured by portfolio
beta. It's the weighted average of all
the individual equities in a portfolio's
beta coefficient.
ANALYSIS

On the basis of rate Thatta Cement’s rate of return is 0.41%.

Engro unit is 0.06%. Quice’s rate is -0.05%.

According to the rate of return, we will recent use the above 3

components.
• On the basis of SD:
• Shell 0.02%
• Engro 0.02%
• Thatta Cement 0.04%
• Quice 0.04%

• On the basis of riskiness, the unit will select the above

companies having lesser risk
 
• On the basis of CV:

• Quice -7101.13

• Shell -924.66

• Colgate -521.15

On the basis of CV , we will select Shell , Quice and Colgate.

Finally, the portfolio will have o ne company namely, Quice, Shell and Colgate because the companies have less amount of risk on compound to
others.

• Weighted Average:

• Quice: 33.4%

• Shell: 33.3%

• Colgate: 33.3%

• Calculating expected rate of return of portfolio:

Rp= ((33.4%)(-0.05)+(33.3%)(-0.16)+(33.3%)(-3.73) = -1.31%

 
• In this project , we have collected the data of the well known
companies from the Pakistan Stock Exchange and investing.com.
After that we have done the analysis of all the companies. The
objectives of this project which was assigned to us were achieved.
The objective of this project is to teach students: How to calculate;
Return of a single stock (Holding period return in rupees ,Return of
a portfolio of financial securities, Risk of a single stock and Risk of
a portfolio of financial securities, How to construct an optimal
portfolio, How to maximize returns by minimizing risk associated
with equity market.
 REFERENCES

• For data collection:

• www.psx.com
• www.investing.com