Equity Valuation Report-MJL Bangladesh Limited (Initiation Coverage)

MJL Bangladesh Limited (MJLBD) is a joint venture Company between state-owned Jamuna Oil Company Limited and EC Securities Limited (subsidiary of the East Coast Group). EC Securities Limited holds 52.062% shares of the company while Jamuna Oil Company Limited owns 19.454% stake of the MJLBD as on 30 June 2016. MJLBD initiated as a lubricating oil marketing company of Mobil brand but later in 2003 with the introduction of Lube Oil Blending Plant (LOBP) it also got engaged in blending lubricant and grease products. With both its trading and manufacturing facilities, MJLBD now holds highest market share in lubricant market of Bangladesh. The Company’s entry into LPG business in Bangladesh by investing in its two subsidiaries has started to contribute significantly in both the top-line as well as bottom-line of the consolidated results. The Company’s two major subsidiary, Omera Petroleum Ltd. (OPL), engaged in the business of LPG storage and distribution and Omera Cylinder Ltd. (OCL), a backward integration initiative to manufacture Cylinder for OPL, has started commercial operation since March 2015.