PSX record rally: more Pakistani companies join billion-dollar club

The Pakistan Stock Exchange (PSX) has been on a record-breaking spree in recent weeks with its benchmark KSE-100 Index sitting above 116,000 at the close of trading on Monday.

The remarkable bull run has been fueled by a combination of factors including exchange rate stability, smooth transition from one $3-billion Stand-By Arrangement to another larger, longer facility with the International Monetary Fund (IMF), improvement in index-heavy sector’s earnings, and a general mood for stocks after monetary easing.

The recent surge has been further driven by a lower inflation reading in November, which clocked in at 4.9%, raising hopes for a significant policy rate cut in the upcoming Monetary Policy Committee (MPC) meeting scheduled for December 16 (Monday).

The KSE-100 has offered a nearly 180% since June 1, 2023, when it was at 41,273.20, to settle at 116,169 as of December 16, 2024.

“This marks the best comeback in Pakistan stock market’s 75-year history, tripling in value and showcasing unmatched resilience,” said Topline Securities in a note earlier.

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

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 December 16, 2024, a total of eleven companies listed at the PSX have a market capitalisation of $1 billion or more. MARI currently leads the list with a market cap of $3.53 billion.

• Mari Petroleum Company Limited (MARI) ($3.53 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 2024, MARI posted a profit-after-tax (PAT) of Rs77.28 billion in 2024, up nearly 38% year-on-year (YoY) compared to PAT of Rs56.13 billion in the same period of the previous year.

The Board of Directors (BoD) announced a final cash dividend for the year at Rs134/- per share i.e. 1,340%.

Moreover, the BoD also announced the issue of bonus shares for the year June 30, 2024, of 800% i.e. eight shares for every one share held, from the Capital Redemption Reserve Fund and the balance from Revenue Reserves.

“The issuance of bonus shares is a reflection of the increasingly strong balance sheet of the company with a view to grow and diversify further,” the company said back then.

The market capitalisation of MARI at the PSX stands at $3.53 billion. Its share was priced at Rs899.73 as of closing on December 16, 2024.

“Within the KSE-100 Index, MARI now holds the second-largest weight at 5.60%,” said Arif Habib Limited (AHL).

• Oil and Gas Development Company Limited (OGDC) ($3.45 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.

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 the 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 2023-24, OGDC posted a profit-after-tax (PAT) reported a profit-after-tax (PAT) of Rs208.98 billion.

Earnings registered a decline of nearly 7% as compared to Rs224.62 billion in the same period of the previous year (SPLY).

The market capitalisation of OGDC at the PSX stands at $3.45 billion. Its share was priced at Rs233.29 as of closing on December 16, 2024.

• Pakistan Petroleum Limited (PPL) ($1.97 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 2023-24, PPL saw its profit-after-tax (PAT) jump nearly 19% to clock in at Rs115.48 billion for the fiscal year ended June 30, 2024.

The market capitalisation of PPL at the PSX stands at $1.97 billion. Its share was priced at Rs211.40 as of closing on December 16, 2024.

• Fauji Fertilizer Company (FFC) ($1.83 billion)

Fauji Fertilizer Company (PSX: FFC) is one of Pakistan’s largest fertilizer producers.

FFC is a public company incorporated in Pakistan under the Companies Act, 1913, (now the Companies Act, 2017).

The principal activity of the company is manufacturing, purchasing and marketing fertilizers and chemicals, including investment in other fertilizers, chemicals, cement, energy generation, food processing and banking operations.

As per the latest financial results, the company posted a consolidated profit-after-tax of Rs22.59 billion in the quarter ended September 30, 2024, up nearly 45% compared with Rs15.62 billion in the same period of the previous year.

The market capitalisation of FFC at the PSX stands at $1.83 billion. Its share was priced at Rs420.11 as of closing on December 16, 2024.

• United Bank Limited (UBL) ($1.52 billion)

United Bank Limited (PSX: UBL) is one of Pakistan’s largest commercial banks.

The bank is a subsidiary of Bestway (Holdings) Limited which is a wholly owned subsidiary of Bestway Group Limited.

As per the bank’s latest financial results, UBL posted a consolidated profit-after-tax of Rs18.32 billion, for the third quarter ended 30 September 2024.

The bank announced an interim cash dividend for the third quarter ended 30 September 2024 at Rs11/- per share i.e.110% this is an addition to the interim dividend already paid at Rs22/- per share i.e. 220%.

The market capitalisation of UBL at the PSX stands at $1.52 billion. Its share was priced at Rs341.39 as of closing on December 16, 2024.

• Meezan Bank Limited (MEBL) ($1.47 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 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 3Q2024, Meezan posted consolidated earnings of Rs26.36 billion for the third quarter that ended September 30, 2024, a little over 1% higher from the profit-after-tax Rs25.99 billion in the same period of the preceding year.

The Board of Directors also announced a cash dividend for the period ended September 30, 2024 at Rs7 per share i.e. 70%. This was in addition to the interim dividend already paid at Rs14 per share i.e. 140%.

The market capitalisation of MEBL at the PSX stands at $1.47 billion. Its share was priced at Rs224.47 as of closing on December 16, 2024.

• Colgate-Palmolive (Pakistan) Limited (COLG) ($1.35 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 $1.35 billion. Its share was priced at Rs1,534.69 as of closing on December 16, 2024.

• Lucky Cement (LUCK) ($1.32 billion)

Lucky Cement is one of Pakistan’s largest cement manufacturers.

The company was incorporated in Pakistan on September 18, 1993 under the Companies Ordinance, 1984 (now the Companies Act, 2017). The principal activity of the company is manufacturing and marketing of cement.

Lucky Cement’s profit-after-tax amounted to Rs72.34 billion, an increase of over 21% during the year 2024, compared with Rs59.54 billion in the previous year on account of higher revenue and lower cost of sales.

The market capitalisation of LUCK at the PSX stands at $1.32 billion. Its share was priced at Rs1,238.84 as of closing on December 13, 2024.

• Pakistan Tobacco Company Limited (PAKT) ($1.21 billion)

Pakistan Tobacco Company Limited is among the biggest cigarette makers in the country,

PAKT is a public limited company incorporated in Pakistan on November 18, 1947 under the Companies Act, 1913 (now the Companies Act, 2017).

The company is a subsidiary of British American Tobacco (Investments) Limited, United Kingdom, whereas its ultimate parent company is British American Tobacco p.l.c, United Kingdom.

The market capitalisation of PAKT at the PSX stands at $1.21 billion. Its share was priced at Rs1,352.44 as of closing on December 16, 2024.

• Nestle Pakistan Limited (NESTLE) ($1.21 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 nine-month period ending September 30, 2024, the company posted a profit of Rs12.3 billion, reflecting a decline of 22% compared to the same period last year.

The market capitalisation of NESTLE at the PSX stands at $1.21 billion. Its share was priced at Rs7,586.36 as of closing on December 16, 2024.

• MCB Bank Limited (MCB) ($1.12 billion)

MCB is one of Pakistan’s largest commercial banks.

The public limited company reported a profit-after-tax (PAT) of Rs18.13 billion in the quarter ended September 30, 2024, a decrease of nearly 8% against Rs19.66 billion recorded in the same period of the previous year (SPPY).

The market capitalisation of MCB at the PSX stands at $1.12 billion. Its share was priced at Rs258.79 as of closing on December 16, 2024.

For the purpose of this calculation, the exchange rate has been used at Rs278 to 1 US dollar.

Story produced with assistance from brokerage house Arif Habib Limited