Market opinion: PSO gets buy vote

Market opinion: PSO gets buy vote

KARACHI: Pakistan State Oil is scheduled to announce its financial result tomorrow on Tuesday.

It is broadly estimated that the company is likely to post a handsome growth during the year owing to the reduction in turnover tax rate to 0.50 percent from 1.00 percent while the ongoing power crises in the country likely to boost the FO Sales of the company, leading a sizeable support the top-line.

Following are the market opinions for upcoming PSO result.

Invisor Securities expects company to post an EPS of Rs 71.58 in upcoming result, while net profit to stand at Rs 12,277 million comparing to Rs 9,050 million during preceding year. The net sales of the company are likely to magnify 11 percent to Rs 822,220 million.Moreover, final cash dividend of Rs 3.00 is anticipated to announce along with the result to take the FY11 payout to Rs 11.00 per share, Invisor report stated.

Arif Habib suggests company to register an EPS of Rs 70.32,33 percent increase led by net profit of Rs 12,061 million moreover a reduction of 78 percent in taxation led the largest support to the bottom line. Net sales of the company are projected to increase by 10 percent. Arif Habib also expects a cash dividend of Rs 5.00 per share to be announced along with the result taking total payout to Rs 13.00 per share.

JS Global Capital believes 34 percent increase in the company`s profitability to bring the EPS at Rs 70.90 million. In this regards, the net profit of the company is anticipated to Rs 12,161 million during the year. They are expecting the net sales of Rs 824,478 million, increased by 11 percent. JS is expecting from the company to announce final cash a final cash payout of Rs 5-8 per share, taking cumulative dividend to Rs13-16 per share.

Sherman Securities anticipates the company`s net profit of Rs 12,106 million comparing to Rs 9,050 million to lead the EPS of Rs 70.58 during the period. The Net sale of the company is likely to expand by 11 percent from Rs 742,758 million from the same period in earlier year. They are anticipating a cash dividend of Rs 4.00 per share taking the full year payout to Rs 12.00 per share.

The consensus estimates of all leading brokerage houses recommend to 'buy' PSO scrip as the company is likely to post a growth as well as boost in FO Sales of the company is expected.