ABSTRACT

The report comprises of stock portfolio of 14 companies.

It provides analysis of why those companies have been
chosen to understand the dynamics of trading.
Sukaina salman
27646 – MBA (M)

Trading Assignment
FIN 506: Business Finance-I
Instructor: Dr. Mohsin
Khawaja
Date: 04 May 2024
Table of Contents
1. Introduction.................................................................................................................................................................2
2. Current Portfolio.........................................................................................................................................................2
3. Description of trading.................................................................................................................................................2
4. Analysis.......................................................................................................................................................................4
Appendix.............................................................................................................................................................................. 5
References............................................................................................................................................................................9

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 1. Introduction
In an era marked by unprecedented financial complexity and market volatility, the ability to navigate the
intricacies of investment landscapes is paramount. As an investor, you use your judgment and analysis to make
informed decisions.
Exhibit 1 shows the initial investment made a month prior, with a budget limit of PKR 100,000.
Exhibit 2 shows some of my shares that I sold and their respective losses.

2. Current Portfolio
Exhibit 3 shows my current portfolio, with a profit of approx. PKR 25,000. Performance has been measured for
approx. 1.5 months, starting from 29th March 2024 – 4th May 2024.

3. Description of trading
1. AKDCL
a. AKDCL has 79.75% equity to asset ratio, generally indicates that the company has a strong equity
base relative to its assets. It may suggest financial stability, lower financial risk, and a lower reliance
on debt financing.
b. Loss:
2. HCAR
a. The main reason for selecting HCAR stocks from the beginning and maintaining portfolio with its
stock till date is because of its growth potential. Pakistan's automotive industry has significant
growth potential. HCAR stands to benefit from the expanding market opportunities in the country.
b. Profit: Rs 2,084
3. HCL
a. Hallmark company limited had proved to 900% dividend payout record and it is regarded as the
best IT Stock to buy.
b. Profit: Rs 12,322
4. LCI
a. Lucky Cement Limited has a widespread geographical presence, with manufacturing facilities
located in strategic regions across Pakistan. This enables the company to efficiently serve local
markets and leverage regional demand dynamics.
b. Loss = Rs 1,355
5. ABOT
a. Abbott Laboratories is a globally recognized healthcare company with a strong brand presence. In
Pakistan, Abbott's products are well-established and trusted by healthcare professionals and
consumers alike, which can contribute to stable sales and market share for Abbott Laboratories
Pakistan Limited.
b. Profit = Rs 2,430

6. MEBL

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 a. Mezan Bank has demonstrated strong financial performance over the years, with consistent growth
in revenue, profitability, and asset base. Investing in MEBL stocks allows investors to participate in
the bank's success and potential for future growth.
b. Profit = Rs 24
7. PIAA
a. PIA operates both domestic and international flights, serving various destinations within Pakistan
and around the world. As a state-owned enterprise, PIA may receive support and interventions from
the government to address financial and operational challenges.
b. Loss = Rs 103
8. SHSML
a. Shah Murad Sugar Mills may diversify its revenue streams by producing by-products such as
molasses and bagasse. Diversification can help mitigate risks associated with fluctuations in sugar
prices or demand.
b. Profit = Rs 220
9. BNWM
a. Bannu Woollen Mills operates in the textile sector, which is a significant contributor to Pakistan's
economy. The textile industry in Pakistan is known for its resilience and export potential, making
companies like Bannu Woollen Mills integral to the country's industrial landscape.
b. Profit = Rs 54
10. PSYL
a. Profitability ratios such as gross profit margin, operating profit margin, and net profit margin can
help investors understand PSYL's efficiency in generating profits from its operations. Higher
profitability ratios may signal a well-managed and profitable company. P/E ratio = 6.39
b. Loss = Rs 26
11. HPL
a. Hoechst Pakistan Limited Pharmaceutical company often generate stable cash flows from the sale
of prescription drugs, over-the-counter medications, and other healthcare products.
b. No profit/ no loss, new trading
12. AABS
a. Al Abbas sugar Mills Limited over the period of 5 years have shown tremendous success and an
increase in the investment, volume and price of stock. Shown in exhibit 4.
b. No profit/ no loss, new trading
13. FCCL
a. FCCL is one of the leading cement manufacturers in Pakistan, with a strong market presence and
brand reputation. Market Cap = 52,392,816,620
b. No profit/ no loss, new trading
14. KEL
a. KEL holds a monopoly on the distribution and transmission of electricity in Karachi, serving
millions of residential, commercial, and industrial customers.
b. No profit/ no loss, new trading

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 4. Analysis
Upon reviewing the analysis of the investment portfolio, it's evident that the strategy of investing in companies
with strong equity to asset ratios, growth potential, and stable financial performance has yielded positive results
in several instances. Companies such as HCAR and HCL, with promising growth prospects and solid financial
fundamentals, have delivered significant profits, validating the selection criteria. Additionally, investments in
established companies like ABOT and MEBL, with resilient business models and strong market positions, have
also generated favorable returns. However, there are areas for improvement, particularly in mitigating losses
incurred by investments in companies such as LCI and PSYL, which faced operational challenges or reported
unexpected losses.

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Appendix
Exhibit 1

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Exhibit 2

6
Exhibit 3

7
Exhibit 4

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References
1. https://www.goodreturns.in/personal-finance/900-dividend-payout-record-date-best-it-stock-hcl-to-buy-the-
highest-target-set-rs-1-700-find-out-1344389.html
2. https://sarmaaya.pk/psx/company/AKDCL
3. https://www.psx.com.pk/