Author Topic: EFOODS -- Engro Foods Limited  (Read 236875 times)

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Offline asadullah1977

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Re: EFOODS -- Engro Foods Limited
« Reply #1479 on: November 29, 2012, 02:52:54 PM »
Guys i sold at 80 phir himmat nahi baniii...should i buy on current all time high level? seniors pls help
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Re: EFOODS -- Engro Foods Limited
« Reply #1479 on: November 29, 2012, 02:52:54 PM »

Offline stockz_123

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Re: EFOODS -- Engro Foods Limited
« Reply #1480 on: November 30, 2012, 04:36:12 PM »
AKD Daily

EFOODS - Make the most of sector illiquidity!

Unilever Overseas Holding, the parent company of Unilever Pakistan has decided to voluntary delist ULEVER from KSE. Unilever Overseas Holding has 75% shareholding (10mn shares) of ULEVER and will be offering PkR9,700/share as the buy-back price. Given the limited opportunities available in the FMCG space, scrips of the FMCG sector are likely to become more valuable; with sector multiple premiums to further expand. EFOODS is easily the most liquid FMCG sector scrip with free float number of shares at 87mn and CY12TD average daily traded value of PkR214mn (US$2.3mn). We have an 'Accumulate' stance on EFOODS which offers 13% upside to our revised Dec'13 end TP of PkR98/share.

ULEVER decides to delist: Unilever Overseas Holding, the parent company of Unilever Pakistan has decided to voluntary delist ULEVER from KSE. Unilever Overseas Holding has 75% shareholding (10mn shares) of  ULEVER and will be offering PkR9,700/share as the buy-back price. Total transaction value will be of PkR31.8bn (US$331mn). Importantly, the transaction could result in a one-time foreign inflow of ~US$300mn, after accounting for foreign investor share-holding in the company. Given the limited opportunities available in the FMCG space, scrips of the FMCG sector are likely to become more valuable; with sector multiple premiums to further expand. ULEVER easily has the largest free float based market cap of PkR31bn, while its share in the KSE-100 Index at 2.96% is the highest amongst the FMCG space.

Buy back price implies CY13F P/E multiple of 22.3x: Based on our EPS estimates for CY12F and CY13F of PkR370 and PkR435, the buy-back price of PkR9,700/share implies a P/E ratio of 26.2x and 22.3x, respectively, more than 3x the multiple of the KSE. Robust profitability coupled with superior growth potential are the core drivers behind premium multiples. In this regard, ULEVER has indicated increasing investment in the country by a substantial amount.

EFOODS offers something which others don't: EFOODS is easily the most liquid FMCG sector scrip with free float number of shares of 87mn and CY12TD average daily traded value of PkR214mn (US$2.3mn). Since the announcement of ULEVER's delisting on Wednesday, EFOODS has rallied by 7.8%.

Recommendation: We have rolled forward our EFOODS target price to Dec'13. Resultantly our target price has increased to PkR98/share, which at current levels offers an upside of 13%, implying an 'Accumulate' stance. Potential announcement of a JV with a foreign operator presents the key upside risk to our call, while scaling back of capex program due to limited financing (banks reluctance to lend due to risk associated with ENGRO Corp.) is the key downside risk for EFOODS.

Online asim.786

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Re: EFOODS -- Engro Foods Limited
« Reply #1481 on: November 30, 2012, 04:49:51 PM »
looking like foregn buying in efoods  :skeptic:
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Online aliraza

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Re: EFOODS -- Engro Foods Limited
« Reply #1482 on: November 30, 2012, 05:20:01 PM »
AKD Daily

EFOODS - Make the most of sector illiquidity!

Unilever Overseas Holding, the parent company of Unilever Pakistan has decided to voluntary delist ULEVER from KSE. Unilever Overseas Holding has 75% shareholding (10mn shares) of ULEVER and will be offering PkR9,700/share as the buy-back price. Given the limited opportunities available in the FMCG space, scrips of the FMCG sector are likely to become more valuable; with sector multiple premiums to further expand. EFOODS is easily the most liquid FMCG sector scrip with free float number of shares at 87mn and CY12TD average daily traded value of PkR214mn (US$2.3mn). We have an 'Accumulate' stance on EFOODS which offers 13% upside to our revised Dec'13 end TP of PkR98/share.

ULEVER decides to delist: Unilever Overseas Holding, the parent company of Unilever Pakistan has decided to voluntary delist ULEVER from KSE. Unilever Overseas Holding has 75% shareholding (10mn shares) of  ULEVER and will be offering PkR9,700/share as the buy-back price. Total transaction value will be of PkR31.8bn (US$331mn). Importantly, the transaction could result in a one-time foreign inflow of ~US$300mn, after accounting for foreign investor share-holding in the company. Given the limited opportunities available in the FMCG space, scrips of the FMCG sector are likely to become more valuable; with sector multiple premiums to further expand. ULEVER easily has the largest free float based market cap of PkR31bn, while its share in the KSE-100 Index at 2.96% is the highest amongst the FMCG space.

Buy back price implies CY13F P/E multiple of 22.3x: Based on our EPS estimates for CY12F and CY13F of PkR370 and PkR435, the buy-back price of PkR9,700/share implies a P/E ratio of 26.2x and 22.3x, respectively, more than 3x the multiple of the KSE. Robust profitability coupled with superior growth potential are the core drivers behind premium multiples. In this regard, ULEVER has indicated increasing investment in the country by a substantial amount.

EFOODS offers something which others don't: EFOODS is easily the most liquid FMCG sector scrip with free float number of shares of 87mn and CY12TD average daily traded value of PkR214mn (US$2.3mn). Since the announcement of ULEVER's delisting on Wednesday, EFOODS has rallied by 7.8%.

Recommendation: We have rolled forward our EFOODS target price to Dec'13. Resultantly our target price has increased to PkR98/share, which at current levels offers an upside of 13%, implying an 'Accumulate' stance. Potential announcement of a JV with a foreign operator presents the key upside risk to our call, while scaling back of capex program due to limited financing (banks reluctance to lend due to risk associated with ENGRO Corp.) is the key downside risk for EFOODS.

agar akd bhai na kah deya to efoods 98 ho gayyyyyyyyyy :dance :dance samaj laoo december ma

Offline dreamer

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Re: EFOODS -- Engro Foods Limited
« Reply #1483 on: November 30, 2012, 05:40:55 PM »
@Seniors and experts.
Please elaborate on the impact of delisting of Unilever from our stock exchanges on EFOODS? In simple words please, not in brokers language. Thanks

Offline Poker Face

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Re: EFOODS -- Engro Foods Limited
« Reply #1484 on: November 30, 2012, 05:55:53 PM »
no major impact.
AKD are supposing that money given by Unilever to shareholders will be used in buying Efoods shares, as they may like to reinvest their money in Food sector stocks. This may result in Efoods price go up.
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Offline Irfankhan

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Re: EFOODS -- Engro Foods Limited
« Reply #1485 on: November 30, 2012, 06:00:18 PM »
no major impact.
AKD are supposing that money given by Unilever to shareholders will be used in buying Efoods shares, as they may like to reinvest their money in Food sector stocks. This may result in Efoods price go up.
I am unable to understand 87.50 or 88 of efoods and 96 for engro. it is going to cross engro corp? how the market people buys efoods at such higher price when ecorp is the owner? pokerbhai pls guide me
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Offline dreamer

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Re: EFOODS -- Engro Foods Limited
« Reply #1486 on: November 30, 2012, 06:10:05 PM »
no major impact.
AKD are supposing that money given by Unilever to shareholders will be used in buying Efoods shares, as they may like to reinvest their money in Food sector stocks. This may result in Efoods price go up.
Thanks for the clarification. Just a query. Would the delisting of Unilever from stock exchanges have any negative impact on its food product (particularly icecream) sales and/or their market share.

Offline Poker Face

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Re: EFOODS -- Engro Foods Limited
« Reply #1487 on: November 30, 2012, 06:14:13 PM »
I m using mobile net,
answer is quite long
however, usually holding company getting profits of subsidiary are not totally travel to shareholders. Efoods, robust, safe and growing is being rated better by market than debt burdened, loss making and jammed fertilizer business engro
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Offline Poker Face

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Re: EFOODS -- Engro Foods Limited
« Reply #1488 on: November 30, 2012, 06:16:50 PM »
@ dreamer
no impact
infact, company is planning to grow in pakistan but dont want to share profits with anyone anymore
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Offline Dove

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Re: EFOODS -- Engro Foods Limited
« Reply #1489 on: November 30, 2012, 08:38:10 PM »
iS there any comparison between ULEVER and efoods? Its too small a share to absorb any big chunk of money from delisting of such big share. Its already in a mode of speculative valuation.Yeild too low,as yet, to bet upon. Growth is the only positive but that is also limited. I think not much 'juice' left for the moment. This quarter's result may give some indication. Any comments Poki?

Offline momo

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Re: EFOODS -- Engro Foods Limited
« Reply #1490 on: December 01, 2012, 08:00:41 AM »
The big players are tiring you out. Don't fall for it. Stick with this share. You wont know when it rockets higher.

Should've been accumulating it.

Why the hell people not invested in its IPO priced at 25 rs.
I have easily got 5000 shares in application and at that time most of the investors were very much negative about the stock.
The reason is simple in KSE, investors like to sit in "chalti gari"... :D

I have a good reason, I used to only and only deal in fertilizers and oil/gas sectors when EFOODS IPO'd :D so yeah I missed out big deal tho, bot at 44 in june/jul and now its almost 100% up for me within 6 months I am more than happy with my investment even at 44 :p

Chalo, at least you got in at the right price. Good thing you listened. Not a bad idea to even add more on a pullback.

Buy on any dip, my friends.

Offline space

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Re: EFOODS -- Engro Foods Limited
« Reply #1491 on: December 01, 2012, 09:27:06 PM »
My thanks to Saifullahkhan, alisaiti, space, and other brothers for excellent discourse on this topic. I have offloaded EFOODS at 76 and 80.
1. I am wondering why the EFOODS directors sold out their holdings @73 back in September if they knew that deal with Al-Marai was in the offing? Remember, one of them had something like a million shares in his hands. Had he waited for a month or two, he would have earned an extra over one crore rupees.

It could imply that either this deal talk is a very recent development or the directors were sure that it would not materialise.

Quite a few of you read too much into the sale of stock by insiders, a lot of the times these insiders have no idea where their companies stock is going, this Rs15/sh jump in EFOODS (since the director sold) should clarify to all that MARKET determines the price of a share not INSIDERS :D

laoooooooooooo maaaaaaaaaaaaaaaal
Portfolio : I try to adhere to Div 40% Growth 20% Midterm Play 10%  Daily Masti Items 10% CASH 20%

Offline stockz_123

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Re: EFOODS -- Engro Foods Limited
« Reply #1492 on: December 01, 2012, 10:39:07 PM »
My thanks to Saifullahkhan, alisaiti, space, and other brothers for excellent discourse on this topic. I have offloaded EFOODS at 76 and 80.
1. I am wondering why the EFOODS directors sold out their holdings @73 back in September if they knew that deal with Al-Marai was in the offing? Remember, one of them had something like a million shares in his hands. Had he waited for a month or two, he would have earned an extra over one crore rupees.

It could imply that either this deal talk is a very recent development or the directors were sure that it would not materialise.

Quite a few of you read too much into the sale of stock by insiders, a lot of the times these insiders have no idea where their companies stock is going, this Rs15/sh jump in EFOODS (since the director sold) should clarify to all that MARKET determines the price of a share not INSIDERS :D

laoooooooooooo maaaaaaaaaaaaaaaal

lolz  :biggthumpup: laao maal

Offline bilalmoti

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Re: EFOODS -- Engro Foods Limited
« Reply #1493 on: December 02, 2012, 06:38:13 PM »
aur jab efoods nechay aae ga is result keh baad phir baat karein gay.

Offline 007

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Re: EFOODS -- Engro Foods Limited
« Reply #1494 on: December 02, 2012, 07:15:47 PM »
yes 140 ka high bana kay jab 110 per aye ga efoods to phir baat karain gain

 uuu

Online Dehan

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Re: EFOODS -- Engro Foods Limited
« Reply #1495 on: December 02, 2012, 07:44:41 PM »
aur jab efoods nechay aae ga is result keh baad phir baat karein gay.

Laooooooooooooo efoods 100.
"Suno sab ki, laiken Dehan apna apna"

Offline asadullah1977

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Re: EFOODS -- Engro Foods Limited
« Reply #1496 on: December 02, 2012, 08:12:04 PM »
can seniors pls share the new stop loss and upside resistance level? should i take more position now as the last 2 sessions were different. one day huge
volumes followed by very thin volumes, or should i exit
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Online Dehan

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Re: EFOODS -- Engro Foods Limited
« Reply #1497 on: December 02, 2012, 08:28:34 PM »
can seniors pls share the new stop loss and upside resistance level? should i take more position now as the last 2 sessions were different. one day huge
volumes followed by very thin volumes, or should i exit

Stop loss is 83 and resistance is at 93.
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Offline syed

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Re: EFOODS -- Engro Foods Limited
« Reply #1498 on: December 04, 2012, 10:39:58 AM »
BR Today
Furthermore, given the limited number of opportunities in the FMCG sector, Unilevers voluntary delisting is very likely to move up the prices for other scrips in the sector, most notably affecting Engro Foods valuation.

In fact, Engro Foods is expected to be one of the biggest beneficiaries of this move; as of Friday the companys shares had reportedly rallied by 7.8 percent since Unilevers announcement of its plans. A research report prepared by AKD Securities notes that with an average daily traded value of Rs 214 million, Engro is the most liquid stock in the sector, hence prices are very likely to jump as its shares become more valuable in a sector where illiquidity reigns supreme.