IPO Note on Mir Akhter Hossain Limited (MIRAKHTER) Date: February 02, 2021

Cut off Price-EI (BDT): 60.0 IPO Issue Size (BDT mn): 1,250.00
Public Offering Price (BDT): 54.0 IPO Issue Size (No. of Shares) (mn): 20.77
IPO Information Company Overview:
Face Value 10.0 MIRAKHTER is a construction service provider which service
Cut off Price 54.0 ranges from building architectural and engineering designs to
Authorized Capital (BDT mn) 2,000.0 the full construction of the intended structure.
Pre IPO Paid up Capital (BDT mn) 1,000.0 Company Profile:
Post IPO Paid up Capital (BDT mn) 1.207.7  Incorporation: July 18,1980
Retained Earnings as on 30th  Commercial Operation: 1968
2,724
September, 2020  Key Personnel: Sohela Hossain (Chairman-12.72%), Mir
IPO
(BDTIssue
mn) Size (No. of shares) 20.8 Nasir Hossain (Managing Director-14.90%).
(mn)Issue Size (BDT mn)
IPO 1,250.0  Number of Employees: 3,590
1st Day Free Float Shares (mn) 20.77  Head Office: Red Crescent Borak Tower, Level 7 & 10
Issue managers IDLC Investments Ltd. 71-72 Old Elephant Road, Eskaton Garden, Dhaka 1000.
Management
G.Kibria Limited
& Co., Chartered
Auditor Business Profile:
Accountants
MIRAKHTER has been involved in constructions of roads,
2016-
2017-18 2018-19
2019-20 bridges, highways, railway tracks, airports, 5-star luxury hotels,
17 9m An’ discharge channels, civil construction of power plants,
Financial Information (BDT mn): functional buildings, factory buildings etc. MIRAKHTER is also
Net Sales 2,619 3,133 4,267 2,996 actively engaged in in river dredging, gas pad drilling using high-
Gross Profit 656 822 1,132 835 tech utility rigs, manufacturing of railway sleepers and poles,
and soil stabilization.
Operating Profit 459 588 887 691
Financial Expenses 139 168 361 406 MIRAKHTER’s construction positions are contracted through-
Profit After Tax 529 619 632 375 (1) Open tender, (2) Direct subcontract, (3) Direct purchase
Assets 9,839 12,634 16,988 19,913 method.
Debt 7,260 9,114 12,711 15,755 Notable Projects:
Equity 2,112 2,839 3,471 3,831 a) 1,884 meter long flyover connecting Mirpur to the -
Retained Earnings 2,092 1,731 2,363 2,724 Airport Road
Cash & Cash Eqiv. 628 411 498 405 b) Shahid Ahasan Ullah Master Ural Setu (Tongi Flyover)
Margin: c) Shahid Buddhijibi (3rd Buriganga) Bridge at Basila, Dhaka
Gross Profit 25.1% 26.2% 26.5% 27.9% d) Construction of a new railway line from Majhgram to
Operating Profit 17.5% 18.8% 20.8% 23.1% Dlarchar via Pabna
e) Construction of 8 km approach roads (4-lane) and
Pretax Profit 11.9% 13.4% 12.2% 9.9%
structures under Third Karnaphuli Bridge Project
Net Profit 6.1% 5.8% 4.7% 4.2%
f) Radisson Blu Water Garden Hotel, Dhaka
Growth (YoY):
g) Independent University Bangladesh Campus at
Sales -17.5% 19.6% 36.2% -29.8%
Bashundhara, Dhaka.
Gross Profit -28.6% 25.2% 37.7% -26.2%
Operating Profit -34.4% 28.2% 50.7% -22.1% Ongoing Projects:
Net Profit -21.3% 14.8% 9.9% -40.7% a) Development of Cox’s Bazar Airport (Phase I)
Profitability: b) Development of Osmani International Airport, Sylhet
c) Development of Shah Amanat International Airport,
ROA 6.3% 5.5% 4.3% 2.0%
Chattogram
ROE 28.6% 25.0% 20.0% 10.3%
d) Construction of Kanchpur, Meghna, Gumti 2nd bridges
Res. EPS (Post IPO) 4.38 5.12 5.24 3.11
and rehabilitation of existing bridges (Sub-contract)
NAVPS (Basic) 1,056.1 28.4 34.7 38.3
e) Construction of 6 (six) 14-storied residential buildings in
Leverage: block A of Dhaka Elevated Expressway Project
Debt Ratio 73.8% 72.1% 74.8% 79.1%
Restated
Debt-Equity 3.44 3.21 3.66 4.11 Foreign Partners: MIRAKHTER has partnered with
Interest Coverage 3.30 3.50 2.45 1.70 multinational companies and formed joint ventures with them
*EPS and Net profit are not annualized but the actual figure. to execute projects. Some of those foreign partners are
Post IPO Securities Holding: Samwhan Corporation (Korea), Seokwang Development
Company Limited (Korea), Halla Corporation (Korea), Ranken
No. of Railways Construction Group Company (China), Sadeem Al
Shareholder Type % Holding Lock In
Shares (mn) Kuwait for General Trading and Contracting Company (Kuwait),
Directors/Sponsors 58.67 48.58% 3 Years Wuhan Municipal Construction Group (China), Komaihaltec
Others (3 Years) 23.73 19.65% Inc. (Japan).
Others (2 Years) 17.60 14.57% 2 Years Revenue from ongoing Projects:
Mutual Funds (EIs) 2.1 1.72% Particulars 2018-19 2017-18
Other EIs 8.3 6.88% Lock- in 4,267.04 3,133.02
Total Revenue (in mn)
Public 8.3 6.88% Free
Number of Projects 18 21
NRBs 2.1 1.72%
Per Project Revenue (in mn) 237.06 149.19
Total 120.77 100.00%

1 EBL Securities Limited Research

 IPO Note on Mir Akhter Hossain Limited (MIRAKHTER) Date: February 02, 2021
Cut off Price-EI (BDT): 60.0 IPO Issue Size (BDT mn): 1,250.00
Public Offering Price (BDT): 54.0 IPO Issue Size (No. of Shares) (mn): 20.77
Top 3 Projects: Lock-In Free Share (Trading Date: February 2, 2021):
Particulars 2018-19 (in mn) % Trading Day Lock-In Free Tradable Lock-In for
Kanchpur Meghna Gumti 1,516.53 35.54% Shares (mn) Shares (mn)
Bridge February 2, 2021 20.77 20.77 1st Day
Multi Trade Enterprise Ltd 624.90 14.64% February 2, 2023 17.60 38.37 2 Years
Filotax Limited 469.81 11.01% February 2, 2024 82.40 120.77 3 Years

2017-18 (in mn) % Industry Analysis

Particulars
Uttara Residential 648.74 20.71% Bangladesh is one of the few countries which has been
Apartment project expected to achieve a GDP growth in 2020. GDP has increased
Kanchpur Meghna Gumti 491.23 15.68% by 5.24% in 2019-20 according to BBS which increases per
Bridge capita income of Bangladesh by $155 to $2,064. For 2021, IMF
Army ECB Shylhet Project 427.00 13.63%
has forecasted a 4.4% GDP growth for Bangladesh and
Bangladesh is projected to surpass India in per capita income.
Competitors:
The implementation of Annual Development Program (ADP)
Companies has grown at an annual rate of 12.3% from BDT 1,483 billion in
1. Abdul Monem Limited 2018 to BDT 1,665 billion in 2019. However, due to Covid-19,
2. Max Infrastructure Limited ADP implementation suffered in 2020 and only BDT 1,613
3. Toma Group billion project was implemented suffering 3.16% decline from
4. Spectra Construction Company Limited the previous year. In 2020, ADP implementation rate has been
5. Monico Limited the lowest in one decade as the government slowed down
6. Project Builders Limited projects as revenue collection declined due to downturn in
Distribution of Shares: economic activity.
Eligible Investors General Public In Bangladesh, urban population is showing positive growth
Mutual Funds Other EIs NRB Others over years which is stimulating the growth of construction
(10%) (40%) (10%) (40%) sector of Bangladesh. Urban population (%) of Bangaldesh has
Amount (BDT mn) 15.00 45.00 15.00 75.00 increased from 29.71% in 2009 to 37.41% in 2019. Growth in
Shares (mn) 2.08 8.31 2.08 8.31 urbanization leads to increase government investment in
infrastructural development.
IPO Fund Utilization Plan:
Bangladesh Govt. has undertaken different large scale
Particulars Amount (mn) % development projects in recent periods. In 2019-20,
Heavy Equipment Purchase 503.00 40.24% contribution of construction sector in the provisional GDP was
Aggregate Processing Plant 127.00 10.16% 7.89%. Contribution of construction sector in GDP over years is
Asphalt Plant 46.75 3.74% showing a positive trend. The growth in construction sector
37.40 2.99% both from private and public investment is conducive for the
Concrete Batching Plant
business growth of Mir Akhter.
Warehouse and Workshop for 100.85 8.07%
Equipment Maintenance and
Refurbishment Urabn Population (%) of the total population
Repayment of Bank Loan 400.00 32.00%
Estimated IPO Expenses 35.00 2.80%
TOTAL 1250.00 100%
Bank Loan is projected to be paid within 3 months of obtaining 37.4%
35.8% 35.9% 36.6%
IPO proceeds. Construction of asphalt plant is projected to be 34.3%
completed within the first 9 months of obtaining IPO proceeds.
Procurement of heavy equipment, construction of concrete
2015 2016 2017 2018 2019
batching plant and construction of warehouse and workshop
for equipment maintenance and refurbishment are expected
Source: World Bank
to be completed within the first 12 months of obtaining IPO
proceeds. Finally, construction of aggregate processing plant is
Comparison among Recently listed Engineering Companies:
expected to be completed within 18 months of receiving IPO
Post IPO Issue Re EPS 1st Day P/E Current
proceeds.
Paid Up Size While Closing (listing Price*
Capital Raising History: Scrips
(mn) (mn Listing Price day)
Allotment Date of Allotment BDT Shares)
1st 18-07-1980 100,000 KDSALTD 520 12 2.2 85.8 39.0 44.3
2nd 24-10-1988 19,900,000 OAL 1,169 20 1.2 48.4 41.7 7.3
3rd 31-12-2017 980,000,000 BSRMLTD 1,734 18 4.6 78.0 17.1 71.8
Total 1,000,000,000 IFADAUTOS 1,150 21 5.2 67.7 13.1 47.5
*All allotment except the third one has been done through cash.
YPL 590 20 1.4 60.1 43.0 11.3
BBSCABLES 1,200 20 3.1 90.3 29.1 54.6

2 EBL Securities Limited Research

 IPO Note on Mir Akhter Hossain Limited (MIRAKHTER)
Cut off Price-EI (BDT): 60.0
Public Offering Price (BDT): 54.0
NAHEEACP 528 15 1.9
SSSTEEL 2,450 25 1.3
RUNNERAUTO 1,081 14 4.3
COPPERTECH 600 20 0.8
DOMINAGE 950 30 1.0
MIRAKHTER 1,208 21 3.6
*Current Prices are as on February 1, 2020.
Investment Insight
Investment Positive:
 With the IPO proceeds, MIRAKHTER has planned to invest
BDT 815 million in increasing its capacity to execute more
construction projects. The company has forecasted an
increase in BDT 1,605 million in revenue and BDT 221
million in net profit as a result of these investments. This
project can increase EPS by additional BDT 1.83.
 MIRAKHTER has been in the construction business for
more than five decades, have successfully completed
large scale projects and have partnered with multiple
multinational companies. This track record and reputation
of MIRAKHTER is valuable in the industry that it operates
in to while competing for profitable large scale contracts.
 MIRAKTHER is going to pay BDT 400 million of its long term
loan which is going to deduct its current BDT 11.7 billion
long term loan to BDT 11.3 billion. This will alleviate the
large interest expenses of MIRAKHTER in the and increase
the bottom line by 2.22%.
 MIRAKHTER’s has achieved 12.47% CAGR bottom line
growth from 2014-15 to 2018-19 mainly through the
growth of profit from Joint venture business (31.14%
CAGR during the same period) MIRAKHTER’s gross profit
margin has gradually increased since 2016-17 from
25.06% to 27.87% in 2019-20 9m An’ which indicates
increasing efficiency in the construction process.
 MIRAKHTER’s current ongoing project number is 37 and
the total value of the project is BDT 58,649 million. As a
result, MIRAKHTER will be able to generate significant top
line revenue in the upcoming financial years.
Date: February 02, 2021
IPO Issue Size (BDT mn): 1,250.00
IPO Issue Size (No. of Shares) (mn): 20.77
81.6 39.2 47.1 Investment Negative:
50.1 39.1 19.4  MIRAKHTER’s industry practice is to finance heavily
99.8 23.2 50.6 through debt capital. MIRAKHTER has been increasing its
44.8 21.0
reliance on debt capital in recent years by increasing long
56
term loan and short term loan at a CAGR of 37.85% and
15 15 25.7
39.36% during the period of 2015-16 and 2019-20 9m An’.
As a result, time interest earned ratio has decreased from
3.30 in 2016-17 to 1.70 in 2019-20 9m An’.
 MIRAKHTER’s net profit margin has decreased from 6.07%
in 2016-17 to 4.24% in 2019-20 primarily due to increase
in financial expense and tax provision.
 In the first 9 months of 2019-20, MIRAKHTER has suffered
top line degrowth of 29.8% and in 2019-20 suffered
bottom line degrowth of 40.7% respectively. Suspension
of construction work in the first and second quarter has
likely caused this downturn.
 MIRAKHTER imports a large chunk of its raw materials and
any price fluctuation in the foreign market will adversely
impact its business. Also, the company is exposed to high
interest risk due to its high exposure to debt capital.
 MIRAKHTER’s business growth is heavily correlated with
macroeconomic condition. Any change in macroeconomic
condition will always directly impact MIRAKHTER.
Government’s budget allocation for infrastructural
development is another important indicator of
MIRAKHTER’s business growth. As a result, MIRAKHTER’s
revenue and profit growth can witness volatility.
Recent Financial Information
MIRAKHTER has announced profit after tax of BDT 215.12
million and basic EPS of Tk. 2.15 for the 6 (six) months (July-
December 2020) period ended on 31 December 2020 against
profit after tax of Tk. 207.46 million and basic EPS of Tk. 2.07
for the same period of the previous year. However, Post-IPO
EPS would be Tk. 1.78 for 6 (six) months (July-December 2020)
period ended on 31 December 2020. Pre-IPO Net Asset Value
(NAV) per share (considering Pre-IPO paid up shares) would be
Tk. 40.61 as on 31 December 2020 and the same would be Tk.
43.98 (considering Post-IPO paid up shares).

Five Years' Restated Post IPO EPS (BDT) Profitability Margins of MIRAKHTER
35% GP Margin OP Margin PBT Margin NPAT Margin
5.12 5.24 30%

25%
4.38
20%
3.56
15%
3.11
10%

5%

0%
2016-17 2017-18 2018-19 2019-20 2020-21 6m An' 2015-16 2016-17 2017-18 2018-19 2019-20 9m An'

3 EBL Securities Limited Research

 IPO Note on Mir Akhter Hossain Limited (MIRAKHTER) Date: February 02, 2021
Cut off Price-EI (BDT): 60.0 IPO Issue Size (BDT mn): 1,250.00
Public Offering Price (BDT): 54.0 IPO Issue Size (No. of Shares) (mn): 20.77

Relative Valuation and Pricing:

Pricing Based on Relative Valuation

Particulars EPS* Multiple Value

Market Forward P/E 3.56 15.27 60.77
Sector Forward 3.56 17.36 69.09
Sensitivity Analysis
Price @15(x)PE 3.56 15.00 53.40
Price @20(x)PE 3.56 20.00 71.20
Price @25(x)PE 3.56 30.00 106.80
Price @30(x)PE 3.56 35.00 124.60
NAV Based Pricing
NAVPS Multiple Value
NAVPS (market) 40.61 1.81 73.50
NAVPS (Sector) 40.61 2.40 97.46
HIGHEST PRICE RANGE AND P/E FOR THE FIRST 3 TRADING DAYS:

Day Circuit Breaker Price P/E

1st 50% 81.0 22.75
2nd 50% 121.5 34.12
3rd 10% 133.7 37.54

STATEMENT OF COMPREHENSIVE INCOME (IN BDT)

Particulars 2015-16 2016-17 2017-18 2018-19 2019-20
9m An’

Gross Turnover 3,176,402,745 2,619,127,354 3,133,017,235 4,267,036,996 2,996,311,144

Cost of execution
2,257,430,465 1,962,688,819 2,310,921,894 3,134,809,245 2,161,239,228
of the contract
GROSS PROFIT 918,972,280 656,438,535 822,095,341 1,132,227,751 835,071,916

Operating Expenses: 219,616,692 197,350,978 233,658,637 245,251,801 143,883,599

PROFIT FROM OPERATIONS 699,355,588 459,087,557 588,436,704 886,975,950 691,188,317

Non-Operating Income 5,229,605 7,935,773 19,392,448 22,599,281 24,601,213

Interest expenses 338,123,222 138,936,906 168,021,947 361,407,703 405,612,723

PROFIT BEFORE WPPF 366,461,971 328,086,424 439,807,205 548,167,528 310,176,808

Allocation for WPPF 17,450,570 15,623,163 20,943,200 26,103,216 14,770,324

PROFIT BEFORE TAX 349,011,401 312,463,261 418,864,005 522,064,312 295,406,484

Provision for Income Tax 147,272,766 153,597,453 236,478,583 321,559,939 168,391,567

PROFIT AFTER TAX FOR THE YEAR 201,738,635 158,865,808 182,385,422 200,504,373 127,014,917
Profit after tax from Joint
300,665,525 370,259,747 436,388,543 431,989,484 353,061,139
Ventures
Total Net Profit after tax for the
502,404,160 529,125,555 618,773,965 632,493,857 480,076,056
year
EPS Restated 4.16 4.38 5.12 5.24 3.11

4
EBL Securities Limited Research
IPO Note on Mir Akhter Hossain Limited (MIRAKHTER) Date: February 02, 2021
Cut off Price-EI (BDT): 60.0 IPO Issue Size (BDT mn): 1,250.00
Public Offering Price (BDT): 54.0 IPO Issue Size (No. of Shares) (mn): 20.77

STATEMENT OF FINANCIAL POSITION (IN BDT)

Particulars 2015-16 2016-17 2017-18 2018-19 2019-20

9m An’
Non-Current Assets: 3,651,571,247 5,754,355,835 7,814,438,286 11,328,777,764 14,572,585,325
Property, Plant & 2,510,001,688 2,889,204,001 3,480,939,518 3,970,622,784 3,896,718,725
Equipment
Investment in Joint 502,510,048 2,219,967,020 3,724,749,773 6,781,866,183 10,139,650,031
Venture
Investment in Projects 639,059,511 645,184,814 608,748,995 576,288,797 536,216,569
Current Assets: 3,398,597,368 4,084,680,000 4,819,559,832 5,659,383,688 5,340,186,444
Security Deposit 539,355,214 630,521,443 702,390,565 784,415,102 758,679,203
(Retention Money)
Advances and 681,273,123 275,065,970 729,332,684 1,088,889,958 1,054,877,440
Prepayments
Accounts Receivable 485,917,988 481,917,988
Other Receivable 39,345,694
FDR 6,000,000 268,848,784 285,986,539 754,972,500
Advance Income tax net 47,619,442 52,692,485 51,012,416 48,806,217 45,116,035
of Tax Provision
Inventories 1,806,662,031 1,743,656,601 2,118,474,065 2,484,794,553 3,076,712,370
Cash and Cash Equivalents 317,687,558 627,976,729 411,099,881 497,505,358 404,801,396
TOTAL ASSETS 7,050,168,615 9,839,035,835 12,633,998,118 16,988,161,452 19,912,771,769
SHAREHOLDERS' EQUITY AND LIABILITIES:
Shareholders' Equity: 1,583,065,343 2,112,190,898 2,838,504,744 3,470,998,601 3,831,055,643
Share Capital 20,000,000 20,000,000 1,000,000,000 1,000,000,000 1,000,000,000
Revaluation Reserve 107,539,881 107,539,881 107,539,881
Retained Earnings 1,563,065,343 2,092,190,898 1,730,964,863 2,363,458,720 2,723,515,762
Non-Current Liabilities: 3,253,733,261 4,983,320,765 6,605,548,338 10,001,644,803 11,752,862,667
Deferred Tax Liability 3,325,976 3,325,976 3,325,976
Long Term Loans 3,253,733,261 4,983,320,765 6,602,222,362 9,998,318,827 11,749,536,691
Current Liabilities: 2,213,370,010 2,743,524,173 3,189,945,036 3,515,518,048 4,328,853,459
Short Term Loan 1,062,035,656 2,276,321,596 2,511,704,786 2,712,213,393 4,005,642,374
Deferred LC 1,048,205,425 353,158,057 601,231,158 696,166,257 222,891,808
Material Advance 352,377 352,377
Mobilization Advance 65,902,216 65,902,216
Liabilities for Expenses 36,874,336 47,789,927 77,009,092 107,138,398 100,319,277
TOTAL SHAREHOLDERS' 7,050,168,614 9,839,035,836 12,633,998,118 16,988,161,452 19,912,771,769
EQUITY AND LIABILITIES
NAV per share (Basic) 791.53 1,056.10 28.39 34.71 38.31
No. of Share Outstanding 2,000,000 2,000,000 100,000,000 100,000,000 100,000,000

5
EBL Securities Limited Research
IPO Note on Mir Akhter Hossain Limited (MIRAKHTER) Date: February 02, 2021
Cut off Price-EI (BDT): 60.0 IPO Issue Size (BDT mn): 1,250.00
Public Offering Price (BDT): 54.0 IPO Issue Size (No. of Shares) (mn): 20.77

RATIO ANALYSIS
Particulars 2015-16 2016-17 2017-18 2018-19 2019-20 9m An’
Liquidity Ratios
Current Ratio 1.54 1.49 1.51 1.61 1.23
Quick Ratio 1.29 1.26 1.29 1.39 1.06
Cash Ratio 0.14 0.23 0.13 0.14 0.09
Operating Efficiency Ratios
Inventory Turnover Ratio 1.25 1.13 1.09 1.26 0.70
Receivable Turnover Ratio - 5.39 6.47 8.85 -
Average Collection Period (Days) - 66.79 55.60 40.66 -
Inventory Conversion 288.11 319.82 330.02 285.35 512.49
Period(Days)
Operating Cycle (Days) - 386.61 385.62 326.01 -
Total Asset Turnover 0.53 0.31 0.28 0.29 0.16
Fixed Asset Turnover 1.67 0.97 0.98 1.15 0.76
Operating Profitability Ratios
Gross Profit Margin (GPM) 28.93% 25.06% 26.24% 26.53% 27.87%
Op. Profit Margin (OPM) 22.02% 17.53% 18.78% 20.79% 23.07%
Pre Tax Profit Margin 10.99% 11.93% 13.37% 12.23% 9.86%
Net Profit Margin (NPM) 6.35% 6.07% 5.82% 4.70% 4.24%
Leverage Ratios:
Total Debt to Equity 2.73 3.44 3.21 3.66 4.11
Debt to Total Assets 61.22% 73.78% 72.14% 74.82% 79.12%
Coverage Ratios:
Times Interest Earned (TIE) 2.07 3.30 3.50 2.45 1.70
Valuation Ratios:
NAVPS (Basic) 48,118.44 52,953.16 102.34 19.81 21.23
EPS (Restated, Post IPO) 1.45 1.51 1.39 1.49 0.97
Growth Rates:
EPS Growth Rate 27.09% 5.32% 16.94% 2.22% -24.10%
Sales Growth Rate 7.79% 4.47% 13.10% 7.24% -10.48%
Gross Profit Growth Rate 7.31% 5.48% 24.13% 5.70% -14.31%
EBIT Growth Rate 8.54% 4.74% 30.39% 5.51% -15.43%
Net Income Growth Rate 19.01% 3.74% -8.11% 7.32% -4.59%
Other Data:
Number of shares outstanding 17,000 17,300 9,832,170 65,000,000 65,000,000
DUPONT ANALYSIS:
Net Profit AT/Sales 18.97% 18.84% 15.31% 15.32% 16.32%
Sales/Total Assets 50.90% 46.52% 48.32% 45.68% 35.60%
ROA 9.66% 8.76% 7.40% 7.00% 5.81%
Net Profit AT/Total Assets 9.66% 8.76% 7.40% 7.00% 5.81%
Total Asset/ Total Equity 1.27 1.29 1.27 1.21 1.19
ROE 12.27% 11.31% 9.38% 8.43% 6.92%
Extended DUPONT ANALYSIS:
Net Profit/Pretax Profit 86.56% 87.87% 62.71% 65.00% 71.32%
Pretax Profit/EBIT 93.62% 91.36% 90.21% 88.52% 91.02%
EBIT/Sales 23.41% 23.47% 27.06% 26.62% 25.15%
Sales/Assets 50.90% 46.52% 48.32% 45.68% 35.60%
Assets/Equity 1.27 1.29 1.27 1.21 1.19
ROE 12.27% 11.31% 9.38% 8.43% 6.92%

6
EBL Securities Limited Research
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EBLSL Rating Interpretation

Overweight : Stock is expected to provide positive returns at a rate greater than its required rate of return
Accumulate : Stock is expected to provide positive inflation adjusted returns at a rate less than its required rate of return
Market weight : Current market price of the stock reasonably reflect its fundamental value
Underweight : Stock expected to fall by more than 10% in one year
Not Rated : Currently the analyst does not have adequate conviction about the stock's expected total return
About EBL Securities Ltd.: EBL Securities Ltd. (EBLSL) is one of the fastest growing full-service brokerage companies in Bangladesh
and a fully owned subsidiary of Eastern Bank Limited. EBLSL is also one of the top five leading stock brokerage houses of the
country. EBL Securities Limited is the TREC-holder of both exchanges of the country; DSE (TREC# 026) and CSE (TREC# 021). EBLSL
takes pride in its strong commitment towards excellent client services and the development of the Bangladesh capital markets.
EBLSL has developed a disciplined approach towards providing capital market services, including securities trading, margin loan
facilities, depository services, foreign trading facilities, Bloomberg Terminal, online trading facilities, research services, panel
brokerage services, trading through NITA for foreign investors & NRBs etc.

EBLSL Key Management

Md. Sayadur Rahman Managing Director sayadur@eblsecurities.com

EBLSL Research Team

M. Shahryar Faiz
Mohammad Asrarul Haque
Mohammad Rehan Kabir
Arif Abdullah
Md Rashadur Rahman Ratul
SAVP & Head of Research shahryar@eblsecurities.com
Research Analyst asrarul@eblsecurities.com
Senior Research Associate kabir@eblsecurities.com
Research Associate arif@eblsecurities.com
Junior Research Associate ratul@eblsecurities.com

EBLSL Institutional & Foreign Trade Team

Asif Islam Associate Manager asif@eblsecurities.com

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