Food & Personal Care-products: SHEZAN INTERNATIONAL LIMITED - Nine Months Ended March 31 2004

It is a public limited company and one of the constituent members of a renowned conglomerate Shahnawaz Group which has diversified interests in sugar, textile, Mercedes Benz vehicles.
It is listed on Karachi and Lahore Stock Exchanges. On 9th July 2004, the market price of its shares closed at Rs 88 which is close to 8.8 times of its par value.
During the last one year the price of the share appreciated from Rs 48 to Rs 91.50 per share.
The company is engaged in the manufacturing, trading, and sale of juices, pickles, jams ketchup's etc based upon or derived from fresh fruits and vegetables.
On March 31, 2004 the paid-up capital of the company remained unchanged at Rs 50 million but its shareholders equity increased to Rs 381.60 million from Rs 212.23 million posted on June 30, 2003.
This included capital reserve of Rs 5.0 million arisen on amalgamation of Hattar Fruit Products Limited (HFPL) on July 01, 2003 with Shezan International Limited (SIL).
SIL's balance sheets financial remained strong and its robustness is evident from its excellent long term debt/equity ratio and current ratio.
Overall results for the nine months ended March 31, 2004 out performed the results of corresponding period of last year which is also evident from the increase in Earning Per Share (EPS) from Rs 2.18 to Rs 6.96 per share.
At this EPS and prevalent share price (Price Earning Ratio) is multiple of nearly 13 of its EPS which continues to exhibit the top confidence of investors in this enterprise which sells "100% Orange Juice" for "good health and a glowing complexion."
The company has promising outlook for the last quarter despite growing competition from local as well as imported brands.
It should not be a matter of concern as the company has entrenched consumer preference, growing sale of "Shezan Twist" and it installed another 100 ML pack Tetra Pak machine.

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Performance Statistics                (Million Rupees)

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Balance Sheet                                  -As At-

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                                 March 31      June 30

                                     2004         2003

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Share Capital-Paid-up:              50.00        50.00

Revenue & Profit:                  331.60       162.23

Shareholders Equity:               381.60       212.23

L.T Debts:                          25.03        18.02

Deferred Taxation:                   2.99         3.31

Current Liabilities:               181.82       216.20

Tangible Fixed Assets:             147.78        90.49

Investments:                        11.29        21.65

L.T Deposits:                        2.29         4.16

Current Assets:                    430.08       333.46

Total Assets:                      591.44       449.76

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Profit & Loss A/c

 For Nine Months Ended      March 31 2004         2003

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Sales:                             668.99       495.92

Gross Profit:                      173.35       107.20

Operating Profit:                   49.80        24.35

Other Income:                        4.11         2.00

Financial (Charges):                (4.73)      (2.08)

Profit Before Taxation:             33.21        12.71

Profit After Taxation:              34.82        10.90

Earnings Per Share (Rs):             6.96         2.18

Share Price (Rs) on 09.07.2004:     88.00            -

Price/Earning Ratio:                12.64            -

Book Value of Share (Rs):           76.32        42.46

Debt/Equity Ratio:                   6:94         8:92

Current Ratio:                       2.36         1.54

Gross Profit Margin (%):            25.91        21.61

Net Profit Margin (%):               5.20         2.20

R.O.A:                               5.88         2.42

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