Investments in Pakistan

[samb]

Re: Investments in Pakistan

@yazdi

Is it the right time to make investments in Pakistan… valuation wise yes..!!!
How safe they are… I would say pretty safe..!!!
Let’s analyse:

2) Stocks:

Never in the history of the country you could find such bargains as now in the equity market. You can get good quality shares at dirt cheap prices in Pakistan. Good companies are selling at prices where if you can hold on to your portfolio in the long term there is big chance that you will make a windfall profit on your equities.

Take for example MCB shares. With 27 rupee earning per annum this share was selling for Rs. 500 in 2007/8.. Today with the same earning the same share is selling for Rs 180/190..

EFUG, the largest insurance company in pakistan, is selling for 30/35, in 2007/8 was selling at over Rs. 800/..

Now these companies and many others, are good companies with growing business and good profitability. ICI/Indus/OGDC/PPL/POL/HBL/UBL/NBP/Lucky/DGKC/Engro/FEBL and many other shares are worth looking at with these prices.

Some of the more riskier share for a part of port folio where you should buy and forget is NIB bank selling for under Rs.3/

Make a long term portfolio in Pakistani equity market, you can not go too much wrong with these prices/valuations.. now is the time to invest in the capital market..!!!

fascinating. thanks for the ideas and especially for focusing on valuation. that MCB seems like a real deal at 6-7x earnings. hmm… so why did it come down all the way from 20x? is that 27 rupees in EPS sustainable? any ideas how expats can buy some of these stocks and especially how to manage currency risk?

btw, do you work in finance? sorry for all the questions. but excellent, excellent thread. thanks for posting it.

never looked at Pakistani companies or the KSE in detail. but now I think I will.