Table of contents
Key market drivers are now steady......................................................................................5
Befriend valuation and liquidity: Be wary of oil and politics................................................10
Index target at 11,200, but stock selection is key ..............................................................14
Banks sector – MARKET WEIGHT ....................................................................................18
E&P sector – OVERWEIGHT.............................................................................................19
Fertiliser sector – OVERWEIGHT ......................................................................................20
Oil marketing sector – OVERWEIGHT...............................................................................21
Telecoms sector – MARKET WEIGHT ..............................................................................22
Companies .........................................................................................................................23
Allied Bank Limited – Limited potential upside ..............................................................24
Engro Chemical Pakistan – A conglomerate in the making...........................................28
Fauji Fertilizer Bin Qasim – Standing on shaky ground.................................................32
Fauji Fertilizer Co. – Safe and steady yield play............................................................36
Habib Bank – Strong franchise but no need to chase price...........................................40
MCB Bank – Time to book profits..................................................................................44
National Bank of Pakistan – Stock price has run ahead of fundamentals .....................48
Oil & Gas Development Co. – Aggressive exploration is the way forward ....................52
Pakistan Oil Fields – A strong comeback ......................................................................56
Pakistan Petroleum – Firm hold on the ground .............................................................60
Pakistan State Oil Co. – Fuelled for long-term growth...................................................64
Pakistan Telecommunication – Trying to reinvent itself.................................................68
United Bank – Earnings CAGR projected at 19%..........................................................72