Pakistani companies with market cap of over $1bn at PSX

The Pakistan Stock Exchange (PSX) has hit record highs in recent weeks with its benchmark KSE-100 Index sitting pretty at over 74,000 and even briefly crossing 75,000 for the first time on Wednesday.

The bull-run, which started with staff-level approval with the International Monetary Fund (IMF) last year, has also been extended over positive indicators such as the uptick in foreign exchange reserves, improvement in current account, advancement in privatisation process, and initiation of talks with the Washington-based lender over a new loan.

There are some new listings as well as companies opt for the initial public offering process looking to take advantage of the buying spree. Looks like all is well at the PSX.

However, despite the nearly 80% growth since June 26, 2023 – the session right before the IMF staff approval – market capitalisation of PSX still stands a lowly $36.2 billion (as of closing on May 15, 2024). The number of companies listed on the Pakistan’s stock market is also at an appalling figure of around 550.

PSX’s market cap can hit $330bn if minority shareholders are ‘protected’: AKD

But with the growth of the KSE-100 – widely seen as a benchmark for market performance – Business Recorder is listing companies with the highest market capitalisation with the figure of $1 billion used as a qualification criterion.

As of May 15, 2024, a total of six companies listed at the PSX have a market capitalisation of $1 billion or more. OGDC currently leads the list with a market cap of $2.15 billion.

• Oil and Gas Development Company Limited (OGDC) ($2.15 billion)

Oil and Gas Development Company Limited (PSX:OGDC) is the largest exploration and production (E&P) company in Pakistan with operations including exploration, drilling operation services, production, reservoir management, and engineering support.

The company has the most extensive exploration acreage in Pakistan, covering over 40% of the country’s total acreage awarded with net hydrocarbons of oil and gas.

OGDCL discovers tight gas reserves in Sindh

With over 67%, the Government of Pakistan is the largest shareholder in OGDC, followed by the OGDC Employee Empowerment Trust and Privatisation Commission of Pakistan.

Its profile on the PSX says the company was incorporated on October 23, 1997 under the Companies Ordinance, 1984 (now the Companies Act, 2017).

The company was established to undertake exploration and development of oil and gas resources, including production and sale of oil and gas and related activities formerly carried on by Oil and Gas Development Corporation, which was established in 1961.

For the financial year 2022-23, OGDC posted a profit-after-tax (PAT) of Rs224.62 billion, an increase of nearly 68%, compared with PAT of Rs133.78 billion reported in the same period of the previous year.

For the first six months of the financial year 2023-24, the company reported a PAT of Rs123.3 billion, up 30% as compared to Rs95.01 billion in same period last year.

The market capitalisation of OGDC at the PSX stands at $2.15 billion.

However, the issue of circular debt stands in the way of its share-price growth. Its share was priced at Rs139.32 as of closing on May 15, 2024.

• Meezan Bank Limited (MEBL) ($1.43 billion)

Meezan Bank Limited (PSX:MEBL), Pakistan’s first and largest Islamic bank, is a public limited company incorporated in the country in 1997.

The bank formally commenced its operations in 2002 after being issued the first-ever Islamic commercial banking licence by the State Bank of Pakistan. Currently, the bank is engaged in corporate, commercial, consumer, investment and retail banking activities.

As per data available on the MEBL’s website, it has a retail banking network of more than 1,000 branches across the country. MEBL’s branch network is supported by banking services that include over 950 ATMs, VISA and MasterCard Debit cards, a call center, internet banking, mobile application and SMS banking facility.

In 2023, Meezan Bank posted earnings of Rs86.02 billion for the calendar year, up nearly 91% from the PAT of Rs45.14 billion in 2022.

For the first three months of 2024, the bank posted consolidated earnings of Rs25.54 billion, up nearly 65% from the profit-after-tax of Rs15.53 billion in the same period of the preceding year.

The market capitalisation of MEBL at the PSX stands at $1.43 billion. Its share was priced at Rs221.99 as of closing on May 15, 2024.

• Mari Petroleum Company Limited (MARI) ($1.35 billion)

By operating the country’s largest gas reservoir at Mari Gas Field, Daharki, Sindh, Mari Petroleum Company Limited (PSX: MARI) is the second largest producer of natural gas.

A public limited company incorporated in Pakistan in 1984, Mari Petroleum is an integrated oil and gas exploration and production company and around 70% exploration success rate, which is much higher than industry averages of around 33% national and 14% international.

Mari’s key customers include fertiliser manufacturers, power generation companies, gas distribution companies; and refineries.

For the financial year 2023, MARI posted its highest-ever profit of Rs56.13 billion, up 70% year-on-year, compared to profit of Rs33.1 billion in the same period last year.

For the first half of the financial year 2024, the company posted a profit-after-tax of Rs37.51 billion, up over 57% year-on-year, compared to profit-after-tax of Rs23.87 billion in the same period of the previous year.

The market capitalisation of MARI at the PSX stands at $1.35 billion. Its share was priced at Rs2,828.01 as of closing on May 15, 2024.

• Nestle Pakistan Limited (NESTLE) ($1.2 billion)

Nestle Pakistan Limited (PSX: NESTLE) is a subsidiary of Nestle S.A based in Vevey, Switzerland and is the leading company in Pakistan in the food and beverages category. They operate in various segments such as dairy, juices, drinks, nectars, coffee, breakfast cereals, and infant nutrition.

For the financial year 2023, Nestle Pakistan reported an increase of 23.4% in its revenue as compared to the FY22.

For the three-month period ending March 31, 2024, the company said its revenue rose to Rs54.4 billion, reflecting a growth of 9.7% compared to the same period last year.

The market capitalisation of NESTLE at the PSX stands at $1.2 billion. Its share was priced at Rs7,380 as of closing on May 15, 2024.

• Pakistan Petroleum Limited (PPL) ($1.2 billion)

Pakistan Petroleum Limited (PSX: PPL) is a key supplier of natural gas in the country. The company is one of the largest and leading exploration and production companies engaged in conducting exploration, prospecting, development and production of oil and natural gas resources.

The company contributes over 20% of the country’s total natural gas supplies besides producing crude oil, Natural Gas Liquid and Liquefied Petroleum Gas.

For the financial year 2022-23, PPL posted a jump in PAT of nearly 79%, as it clocked in at Rs97.22 billion for the year ended June 30, 2023.

For the first six months of the financial year 2023-24, PPL recorded an increase of nearly 44% in its PAT that stood at Rs69.78 billion.

The market capitalisation of PPL at the PSX stands at $1.2 billion. Its share was priced at Rs123.06 as of closing on May 15, 2024.

• Colgate-Palmolive (Pakistan) Limited (COLG) ($1.13 billion)

Colgate-Palmolive Pakistan Limited (PSX: COLG) was set up in 1977 as a public limited company by the name “National Detergents Limited”. It was renamed to what it is now in 1990 when it entered a Participation Agreement with Colgate-Palmolive Company, USA.

The company manufactures and sells detergents, personal care and other related products.

The market capitalisation of COLG at the PSX stands at $1.13 billion. Its share was priced at Rs1,299.96 as of closing on May 15, 2024.

For the purpose of this calculation, the exchange rate has been used at Rs279 to 1 US dollar.

Story produced with assistance from brokerage house Arif Habib Limited

The article, originally published on May 15, 2024, was updated on May 16, 2024 to rectify an error in Nestle’s information. The company’s revenue – not profit – rose to Rs54.4 billion in the three-month period ended March 31, 2024. The error is regretted, and has been rectified.