The company is a public limited company incorporated in the province of Sindh. Its shares are quoted at the stock exchanges in Karachi and Lahore. It was listed at Karachi Stock Exchange in 1991.
On 27th September 2004 the closing price of Din Textile share was quoted at Rs 4.25 per share at 57.5% discount to the par value of Rs 10.
The prevalent market value of the share is rather under priced despite its robust financial health, growing sales, excellent dividend pay out track record and above all forward looking management.
It can be seen from stock exchange published data that during the last one year the price of the share moved up from 2.0 to Rs 6.65 but did not come anywhere nearer to the par value.
It is a textile spinning unit located at Tehsil Pattoki District Kasur in the province of Punjab. During FHY 2003-04, the period under review, the company made additions to the extent of Rs 73.76 million.
The management announced that it is always desirous of progression. In view of the preparation of Pakistan's textile industry to compete with Asian economies and to avail forthcoming business opportunities in WTO regime for enhanced export, the company decided to set up a most modern spinning unit, Chief Executive of the company, S.M. Muneer informed that the company has negotiated and arranged a syndicated long term loan of Rs 1,000 million to finance capital expansion needs for new spinning unit which will be installed at Raiwind by-pass Road, District Lahore.
The company's financial health remained sound as can be assessed through the solvency & liquidity ratios and excellent breakup value of the share embedded with high premium. Moreover its balance sheet footing expanded by a relatively large amount of Rs 573.31 million.
The half year's sales amount increased by Rs 136.57 million or 19.6% to Rs 834.76 million from Rs 698.19 million posted in the corresponding period last year. Despite substantial increase in the sales amount, the company's gross profit substantially went down to Rs 68.84 million from 79.24 million of the same period last year.
It can be seen from appended performance statistics that margin eroded substantially. Operating expenses were also on the higher side. But the reduction financial charges boosted the profitability.
Even then the pretax profit was lower but not to a significant extent. During last year the company had declared dividends @ 20% per year.
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Performance Statistics (Million Rupees)
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Balance sheet -As At-
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March 31 September 30
2004 2003
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Share Capital-Paid-up: 154.42 154.42
Reserves: 560.38 560.38
Unappropriated Profit: 107.12 92.66
Shareholders Equity: 821.92 807.46
L T Debts: 180.00 9.09
Deferred Liabilities: 54.04 52.16
Current Liabilities: 817.56 431.50
Tangible Fixed Assets: 766.50 692.74
L T Deposits: 5.14 9.43
Current Assets: 1,101.88 598.04
Total Assets: 1,873.52 1,300.21
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Profit & Loss A/c For the
Half Year Ended March 31 2004 2003
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Sales: 834.76 698.19
Gross Profit: 68.84 79.24
Operating Profit: 35.95 51.68
Other Income: 1.52 0.78
Financial (Charges): (13.57) (24.75)
Profit Before Taxation: 22.71 26.31
Profit After Taxation: 14.46 16.05
Earning Per Share (Rs): 0.94 1.04
Share Price (Rs) on 27-09-04: 4.25 -
Price/Earning Ratio: 4.52 -
Book Value of Share (Rs): 53.23 52.29
Debt/Equity Ratio: 18:82 1:99
Current Ratio: 1.35 1.39
Gross Profit Margin (%): 8.25 11.35
Net Profit Margin (%): 1.73 2.30
R.O.A (%): 0.77 1.23
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