BMA Capital Management Limited

​BMA is amongst the leading financial groups in Pakistan. BMA Capital’s core areas of business include Capital Markets, Corporate Finance & Advisory, Asset Management, and Financial Products Distribution. BMA Capital is the leader in privatisation advisory in Pakistan, having successfully advised on over 50% of all privatisations in Pakistan, by value, in transactions valued in excess of US$4 billion. Recent transactions include joint lead managing the $813 million GDR Offering of 10% of OGDCL on the London Stock Exchange in 2006-07, and advising Etisalat on their successful acquisition of a 26% strategic stake in Pakistan Telecommunications Company Limited (PTCL) for US$2.6 billion, the largest M&A transaction and foreign direct investment in Pakistan’s history. The firm is among the top brokers in the Pakistan equity and treasury markets, and is among a handful of firms that comprehensively cover all segments of the capital markets. This is supported by a very strong and independent research capability, which is quoted regularly in both local and international media. BMA Capital’s retail brokerage brand, BMA Trade, has launched a nationwide network of branches as well as a comprehensive online trading platform, enabling investors across Pakistan to take part in the capital markets.

Masroor Hussain Zaidi
  • Masroor Hussain Zaidi

PIOC: Lower retention prices turns bottom-line red

Pioneer Cement Limited (PIOC) announced its results earlier today, posting loss after tax of PKR 412mn (LPS: PKR 1.81) during 3QFY20 against earnings of PKR 298mn (EPS: PKR 1.31) during same period last year. The result is above our expectations where main deviation emanated from lower than anticipated recognition of finance cost.    On cumulative basis, net sales for the period declined by 20% YoY to PKR 5.98bn. We suspect i) lower retail prices, ii) higher dealer margins and iii) higher ener...

Faizan Ahmed
  • Faizan Ahmed

BAFL: High provisioning keeps earnings lower than estimates

Bank Alfalah Limited (BAFL) announced its earnings for 1QCY20 in which the bank posted PAT of PKR 2,821 Mn (EPS: PKR 1.59). The earnings announcement disappointed our expectations due to higher administrative and provisioning expenses. Net-Interest Income of the bank improved by 6%/2% YoY/QoQ during the period to clock-in at PKR 11,781 Mn. The change in NII was largely in-line with estimates. High operating expenses during the quarter (cost to income ratio at 56% vis-à-vis 52% in 4QCY19) wer...

Masroor Hussain Zaidi
  • Masroor Hussain Zaidi

FFC: Earnings remained stable as margin improves

Fauji Fertilizer Company Limited (FFC) announced its results earlier today, posting profit after tax of PKR 4.26bn (EPS: PKR 3.35) during 1QCY20 against earnings of PKR 3.7bn (EPS: PKR 2.91) during same period last year.  Along with the result, the company also announced a dividend of PKR 2.5/Sh. This result was broadly in line with our expectations. Revenue of the company stood at PKR 20.6bn for the quarter, up by 2% YoY on the back of improved offtakes. Urea sales of FFC increased 4.8% on ...

Asad Ali
  • Asad Ali

INDU: Better cost controls bolster margins and bottomline

Indus Motor Company Limited (INDU) announced its results earlier today, registering profitability of PKR2,679mn (EPS: PKR 34.09) during 3QFY20 as compared to earnings of PKR 3,345mn (EPS: PKR 42.56) last year, outperforming market expectations. On a cumulative basis, INDU’s earnings eroded by 51% YoY to PKR 4,984mn (EPS: PKR63.41) for 9MFY20. Along with the result, the company also announced interim cash dividend of PKR10/sh, taking cumulative payout to PKR23/sh. Revenues stood at ...

Masroor Hussain Zaidi
  • Masroor Hussain Zaidi

LUCK: Higher other income and lower ETR improves net margin

Lucky Cement Limited (LUCK) announced its result for 3QFY20 wherein the company reported a Profit after Tax of PKR 999mn (EPS: PKR 3.09) compared to PKR 981mn (EPS: PKR 3.03) in the previous quarter. This result was broadly in line with our expectations.   On cumulative basis, the company reported profit after tax of PKR 2,936mn posting a 65% decline from same period last year. This sharp decline in profitability is mainly attributable to i) drop in local cement dispatches, ii) lower cement p...

Masroor Hussain Zaidi
  • Masroor Hussain Zaidi

PIOC: Lower retention prices turns bottom-line red

Pioneer Cement Limited (PIOC) announced its results earlier today, posting loss after tax of PKR 412mn (LPS: PKR 1.81) during 3QFY20 against earnings of PKR 298mn (EPS: PKR 1.31) during same period last year. The result is above our expectations where main deviation emanated from lower than anticipated recognition of finance cost.    On cumulative basis, net sales for the period declined by 20% YoY to PKR 5.98bn. We suspect i) lower retail prices, ii) higher dealer margins and iii) higher ener...

Faizan Ahmed
  • Faizan Ahmed

BAFL: High provisioning keeps earnings lower than estimates

Bank Alfalah Limited (BAFL) announced its earnings for 1QCY20 in which the bank posted PAT of PKR 2,821 Mn (EPS: PKR 1.59). The earnings announcement disappointed our expectations due to higher administrative and provisioning expenses. Net-Interest Income of the bank improved by 6%/2% YoY/QoQ during the period to clock-in at PKR 11,781 Mn. The change in NII was largely in-line with estimates. High operating expenses during the quarter (cost to income ratio at 56% vis-à-vis 52% in 4QCY19) wer...

Masroor Hussain Zaidi
  • Masroor Hussain Zaidi

FFC: Earnings remained stable as margin improves

Fauji Fertilizer Company Limited (FFC) announced its results earlier today, posting profit after tax of PKR 4.26bn (EPS: PKR 3.35) during 1QCY20 against earnings of PKR 3.7bn (EPS: PKR 2.91) during same period last year.  Along with the result, the company also announced a dividend of PKR 2.5/Sh. This result was broadly in line with our expectations. Revenue of the company stood at PKR 20.6bn for the quarter, up by 2% YoY on the back of improved offtakes. Urea sales of FFC increased 4.8% on ...

Asad Ali
  • Asad Ali

INDU: Better cost controls bolster margins and bottomline

Indus Motor Company Limited (INDU) announced its results earlier today, registering profitability of PKR2,679mn (EPS: PKR 34.09) during 3QFY20 as compared to earnings of PKR 3,345mn (EPS: PKR 42.56) last year, outperforming market expectations. On a cumulative basis, INDU’s earnings eroded by 51% YoY to PKR 4,984mn (EPS: PKR63.41) for 9MFY20. Along with the result, the company also announced interim cash dividend of PKR10/sh, taking cumulative payout to PKR23/sh. Revenues stood at ...

Masroor Hussain Zaidi
  • Masroor Hussain Zaidi

LUCK: Higher other income and lower ETR improves net margin

Lucky Cement Limited (LUCK) announced its result for 3QFY20 wherein the company reported a Profit after Tax of PKR 999mn (EPS: PKR 3.09) compared to PKR 981mn (EPS: PKR 3.03) in the previous quarter. This result was broadly in line with our expectations.   On cumulative basis, the company reported profit after tax of PKR 2,936mn posting a 65% decline from same period last year. This sharp decline in profitability is mainly attributable to i) drop in local cement dispatches, ii) lower cement p...

BMA Research
  • BMA Research

Pakistan Market Strategy: COVID-19 Outbreak – The Black Swan

COVID-19 outbreak has disrupted an already fragile economic recovery Fast paced viral spread is deepening worries: COVID-19 outbreak is the only hot topic as the death toll from the novel virus continues to rattle global economies. Continuing lockdowns and their ensuing effects on economic activity has led the International Monetary Fund (IMF) and other International Financial Institutions (IFIs) to slash global growth forecasts. In Pakistan, this outbreak has brought the economic recovery proc...

Yusuf Rahman
  • Yusuf Rahman

Pakistan Economy: Inflation eases as food prices come under control

CPI eases to 12.40% during Feb’20: Inflation during Feb’20 undershot industry estimates, registering at 12.40% during Feb’20 against 14.56% recorded during Jan’20. Moreover, on a monthly basis, CPI fell by 1.04% MoM during Feb’20 in contrast to rising by 1.97% MoM during the preceding month. Bulk of the decline emanated from index heavyweights, including the food segment (-1.99% MoM) and the housing segment (-2.47% MoM). The CPI’s food segment eased during the month supported primarily by the Go...

Yusuf Rahman
  • Yusuf Rahman

Pakistan Strategy - Revisiting market thesis amid escalating uncertain...

The flames that initially re-ignited the KSE-100 index to a noteworthy recovery appear to have dimmed recently with the benchmark index losing 7% of its value from highs recorded during Jan’20. The market’s doldrums can largely be attributed to the absence of any notable triggers with investor sentiments likely being influenced by heightened inflationary pressures and geo-political uncertainty.   As the situation continues to unfold, the air of uncertainty over the economy’s ability to strike ...

Yusuf Rahman
  • Yusuf Rahman

Pakistan Economy: Inflation surprises; monetary easing likely delayed

CPI overshoots estimates: Jan20’s CPI inflation overshot industry estimates by a wide margin with a reading of 14.6% while on a monthly basis, inflation surged by 2.0% MoM. Elevated CPI during Jan’20 was largely a consequent of a significant spike in food prices with food inflation recording an uptick of 3.4% MoM. Moreover, the food inflation metric depicts an even more alarming trend on an annual basis, witnessing an upsurge of 23.7%. Proliferating inflationary pressures during recent times can...

BMA Research
  • BMA Research

Pakistan Economy: Out of the Woods

Decline in imports; external account within manageable limits: Significant decline in imports has resulted in reduction of Current Account Deficit (CAD). Imports during first 4 months of FY20 stood at USD15.3bn, down 19.3% YoY or USD3.7bn. Exports, however, have remained flat at around USD2bn. Primary fiscal account is in surplus: Pakistan has posted a primary fiscal surplus (excludes debt servicing cost) of 0.06% of GDP during Jul-Aug’19. This is encouraging as it allays concerns on Pakistan...

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