Pakistan Tobacco Company
(Year End June)
Year
Dividends
Ending Stock Price
Annual Stock Return
2014-2015
21
114.2
2015-2016
24
1433.3
24.28639383
2016-2017
10
2147.5
10.49829066
2017-2018
37
2900
37.35040745
2018-2019
48
2440.6
47.84158621
2019-2020
49
1565
48.64123576
Interpretation
For the year 2019-2020, the return was highest i.e., 47 and 48 and lowest was in 2016-2017 that is
10.4 against 2147.5 share price. The annual dividend for 2016 was 24 and then in the year 2019
and 2020 it increases to 48 and 49, respectively. The ending stock price of the company was highest
in the year 2018 and then face a great collapse in the year 2020. The company is paying a good
amount of dividend.
If we compare the annual returns of both these company we will get to know that there is a
significant difference between both these. The PAKT is performing extremely well as compared
to KYHT.
ANNUAL RETURNS OF INSURANCE SECTOR
1. EFU General Insurance Limited
EFU General Insurance Limited
Year Dividends
Ending Stock Price
Total Stock Return
2015
7.5
143.5
2016
10
151
10.05226
2017
10
152.9
10.01258
2018
10
100
9.654022
2019
10
110.3
10.103
2020
10
120
10.08794
Interpretation
The annual dividend for 2015 was 7.5 and then from the last 5 years the annual dividend is constant
Rs 10. Despite of the fact that the price of ending stock per share collapsed from Rs. 150 to 100
the company still managed to pay its dividend to its shareholders, this shows a positive image of
the firm. Moving on to the ending stock price it was higher in the year 2017 Rs. 152.8 and lowest
in the next year 2018 however despite of having crash of straight Rs 50 at the stock price the
company is hitting back to its way up now its again standing at 120 Rs in 2020. The strategic
management is having a good hold at the market as the dividend stands constant. Lastly, we have
the stock return of the firm which are Rs 10 approximately for the last 5 years, for once it was 9.6
but it was not a big difference at all.
2. Adamjee Insurance Company
Adamjee Insurance Company Ltd
Year Dividends
Ending Stock Price
Total Stock Return
2015
3
56.51
2016
3
74.14
3.31198
2017
4
52
3.701376
2018
2
42.02
1.808077
2019
2.5
42.09
2.501666
2020
2.75
39.32
2.684189
Interpretation
The annual dividend for 2015 and 2016 was Rs 3 whereas it was the highest in the year 2017.Then
it dropped to half price which is Rs 2 in the year 2018. The dividend was Rs 2.5 in 2019 and 2.75
in 2020, it means since 2018 the dividends are improving again but the ending stock price of the
company is declining and declining it was Rs 74.14 in 2016, whereas at the end of our period in
2020 its Rs. 39.32 which is a huge difference and totally a not good sign for the company. The
Total Stock return of the company has also declined in 2016 as it was Rs 3.311 now its Rs. 2.684.
However, it was the lowest in 2018. The company is not going too well, and it is not satisfactory
plus the share prices are also going down. Adam jee Insurance is not advisable at all for investing.