People are now always looking for lower risk when investing anywhere. In share market it is
obvious that people will do so. Making a portfolio is the best way to do so. There is a quote that
“Don’t put all the eggs in same basket”. By portfolio we are investing in different shares to
minimize the risk of investing in one share.
Background of the report
As a major student of Finance it is mandatory to be familiar with stock market and about
portfolio management. By doing so we will be able to find the lucrative share and can make
optimal portfolio in future.
As a part of the major course “Portfolio management” of BBA program, we were assigned to do
our report in “Analysis Different Securities & Manage Optimal Portfolio”
Significance of the Report
Education will be the most effective when theory and practice blends. Theoretical knowledge
gets its perfection with practical application. We all know that there is no alternative of practical
knowledge which is more beneficial than theoretical aspects. The prime reason of this study is to
become familiar with the practical share market and to attain practical knowledge about the
overall share market condition, which is so much essential for each and every student to meet the
extreme growing challenges in job market.
Scope of the report
This study covers five years (2007 to 2011) financial data, financial performance evaluation of
selected shares. What we are doing is financial performance indicator analysis, recommendations
and justifications on the basis of both qualitative and quantitative analysis. Which we can use in
future.
The scope of this report is limited to the overall description of the stock market, making a
portfolio. Analysis its services; its present position, its financial performance analysis the
practical progress of its operation.
1
Objectives of the Report
GENERAL OBJECTIVE
The prime objective of the report is to analyze “Analysis Different Securities & Manage Optimal
Portfolio”.
SPECIFIC OBJECTIVE
The following aspects can be listed as the specific objectives for this practical orientation in stock
market:

 To identify and assess the present lucrative share in share market.

 To calculate the possible return for selected share.

 To understand the implications the financial indicators to identity the better share.

 To compare the financial situation and performance of different share with respect to other
share and with respect to industry performance.

 To identify the findings and raise possible recommendations for improving the portfolio
performance.

 To understand the fundamental and technical analysis to forecast about share.
2
Methodology
Research Design
For analyzing the share both fundamental and technical analyzing has been done. This report is a
descriptive type of research, which briefly reveals the overall activities of selected shares. It has
also been administered by collecting secondary data. Annual reports and the Dhaka stock
exchange website were the major secondary data sources in this regard. Different types of
financial performance ratio are treated as scale of measuring performance. After portfolio
revision stage the decision of rearrange of share will be taken. For analyzing the share secondary
data have been used.
Sources of data: Mainly Secondary data
A. Annual Report of selected company.
B. Website of Dhaka stock exchange
C. Different text book and journals.
D. Various reports and articles related to study.
E. Some of my course elements as related to this report.
3
Limitation
Observing and analyzing the broad performance of a many company for making a portfolio is
not an easy task to do. Moreover due to obvious reasons of scrutiny and confidentiality, the
company does not reveal its many information which we believe are necessary to conduct this
report. However the some of the limitations we have face while preparing this Report are listed
as follows:

 Inadequate Data: Lack of available information about the selected share is the real pain
when are preparing this report.

 Lack of Record: Large-scale research was not possible due to constrain and restrictions
posed by the organization. Unavailability of sufficient written documents as required
making a comprehensive study. In many cases up-to-date information was not available.

 Lack of experiences: Lack of experiences has acted as constraints in the way of
meticulous exploration on the topic. Being a new about stock market we may have
choose wrong share.
4
Introduction to Stock exchange in Bangladesh
The necessity of establishing a stock exchange in the then East Pakistan was first decided by the
government when, early in 1952, it was learnt that the Calcutta Stock Exchange had prohibited
the transactions in pakistani shares and securities.. A decisive step was taken the second meeting
of the organizing committee held on the 13th march, 1953. In the cabinet room, eden building,
under the chairmanship of Mr. A. Khaleeli, secretary government of East Bengal, commerce,
labor and industries department at which various aspects of the issue were discussed in detail.
Then the central government’s proposal regarding the Karachi Stock Exchange opening a branch
at Dhaka did not find favor with the meeting who felt that East Pakistan should have an
independent stock exchange. It was suggested that Dhaka Narayanganj Chamber of Commerce
& Industry should approach its members for purchase of membership cards at RS.2000 each for
the proposed stock exchange. The location of the exchange it was thought should be either
Dhaka, Narayanganj or Chittagong. An organizing committee was appointed consisting of
leading commercial and industrial personalities of the province with Mr. Mehdi Ispahani as the
convener in order to organize the exchange.
It was also decided that membership fee was to be RS.2000 and subscription rate at 15 per
month. The exchange was to consist of not more than 150 members. A meeting of the promoters
was held at the chamber on 03.09.1953 when it was decided to appoint Orr Dignam & Co.,
solicitors to draw up the memorandum and articles of association of the stock exchange based on
the rules of stock exchange existing in other countries and taking into account local conditions.
The 8 promoters incorporated the formation as the East Pakistan Stock Exchange Association
Ltd. on 28.04.1954. As public company, on 23.06.1962 the name was revised to East Pakistan
Stock Exchange Ltd. Again on 14.05.1964 the name of East Pakistan Stock Exchange Limited
was changed to "Dhaka Stock Exchange Ltd."
At the time of incorporation the authorized capital of the exchange was RS. 300000 divided into
150 shares. Of RS. 2000 each and by an extra ordinary general meeting adopted at the extra
ordinary general meeting held on 22.02.1964 the authorised capital of the exchange was
increased to TK. 500000 divided into 250 shares of TK. 2000 each. The paid up capital of the
exchange now stoods at TK.460000 dividend into 230 shares of TK. 2000 each. However 35
shares out of 230 shares were issued at TK. 80,00,000 only per share of TK. 2000 with a
premium of TK. 79,98,000.
Although incorporated in 1954, the formal trading was started in 1956 at Narayanganj after
obtaining the certificates of commencement of business. But in 1958 it was shifted to Dhaka and
started functioning at the Narayangonj Chamber Building in Motijheel C/A.
On 1.10.1957 the stock exchange purchase a land measuring 8.75 kattah at 9F Motijheel C/A
from the government and shifted the stock exchange to its own location in 1959.
5
Function of DSE
The major functions are:











Listing of Companies (As per Listing Regulations).
Providing the screen based automated trading of listed Securities.
Settlement of trading (As per Settlement of Transaction Regulations).
Gifting of share / granting approval to the transaction/transfer of share outside the trading
system of the exchange (As per Listing Regulations 42).
Market Administration & Control.
Market Surveillance.
Publication of Monthly Review.
Monitoring the activities of listed companies (As per Listing Regulations).
Investors grievance Cell (Disposal of complaint bye laws 1997).
Investors Protection Fund (As per investor protection fund Regulations 1999).
Announcement of Price sensitive or other information about listed companies through
online.
6
What is portfolio?
The term portfolio refers to any collection of financial assets such as stocks, bonds, and cash.
Portfolios may be held by individual investors and/or managed by financial professionals, hedge
funds, banks and other financial institutions. It is a generally accepted principle that a portfolio is
designed according to the investor's risk tolerance, time frame and investment objectives. The
monetary value of each asset may influence the risk/reward ratio of the portfolio and is referred
to as the asset allocation of the portfolio. When determining a proper asset allocation one aims at
maximizing the expected return and minimizing the risk. This is an example of a multi-objective
optimization problem: more "efficient solutions" are available and the preferred solution must be
selected by considering a tradeoff between risk and return. In particular, a portfolio A is
dominated by another portfolio A' if A' has a greater expected gain and a lesser risk than A. If no
portfolio dominates A, A is a Pareto-optimal portfolio. The set of Pareto-optimal returns and
risks is called the Pareto Efficient Frontier for the Markowitz Portfolio selection problem.
7
The Big Picture of Investing
To see where the different investment philosophies fit into investing, let us begin by looking at
the process of creating an investment portfolio. Note that this is a process that we all follow –
amateur as well as professional investors - though it may be simpler for an individual
constructing his or her own portfolio than it is for a pension fund manager with a varied and
demanding clientele.
Step 1: Understanding the Client
The process always starts with the investor and understanding his or her needs and preferences.
For a portfolio manager, the investor is a client, and the first and often most significant part of
the investment process is understanding the clients needs, the clients tax status and most
importantly, his or her risk preferences. For an individual investor constructing his or her own
portfolio, this may seem simpler, but understanding ones own needs and preferences is just as
important a first step as it is for the portfolio manager.
Step 2: Portfolio Construction
The next part of the process is the actual construction of the portfolio, which we divide
into three sub-parts.
1.
The first of these is the decision on how to allocate the portfolio across different asset
classes defined broadly as equities, fixed income securities and real assets (such as real estate,
commodities and other assets). This asset allocation decision can also be framed in terms of
investments in domestic assets versus foreign assets, and the factors driving this decision.
2.
The second component is the asset selection decision, where individual assets are picked
within each asset class to make up the portfolio. In practical terms, this is the step where the
stocks that make up the equity component, the bonds that make up the fixed income component
and the real assets that make up the real asset component are selected.
3.
The final component is execution, where the portfolio is actually put together. Here
investors must weigh the costs of trading against their perceived needs to trade quickly. While
the importance of execution will vary across investment strategies, there are many investors who
fail at this stage in the process.
Step 3: Evaluate portfolio performance
The final part of the process, and often the most painful one for professional money managers, is
performance evaluation. Investing is after all focused on one objective and one objective alone,
which is to make the most money you can, given your particular risk preferences. Investors are
not forgiving of failure and unwilling to accept even the best of excuses, and loyalty to money
managers is not a commonly found trait. By the same token, performance evaluation is just as
8
important to the individual investor who constructs his or her own portfolio, since the feedback
from it should largely determine how that investor approaches investing in the future.
These parts of the process are summarized in Figure 1.1, and we will return to this figure to
emphasize the steps in the process as we consider different investment philosophies. As you will
see, while all investment philosophies may have the same end objective of beating the market,
each philosophy will emphasize a different component of the overall process and require
different skills for success.
9
Phases of portfolio management
Security Analysis
Examine the risk and return characteristics of individual security.
Mainly done by two approaches. Fundamental analysis and technical analysis.
Fundamental analysis include fundamental factors like EPS, P/E ratio, NAV, Dividend payout
ratio, market share, quality of management.
Technical analysis involves price movement trend and the skills of portfolio manager.
Portfolio Analysis
Identify the range of possible portfolios that can be constituted from a given set of securities
and calculating their risk and return for further analysis.
Portfolio selection
From the set of efficient portfolio, the optimal portfolio has to be selected for investment
Portfolio revision
As time passes, securities which were ones alternative may cease to be so.
May also be necessary by some investor related changes such as availability of additional funds,
change in risk attitude, need for cash for further alternative etc.
Portfolio evaluation
Mainly done by different risk and return formula.
Main objectives is to see whether the portfolio is running effectively or not
10
PORTFOLIO WEIGHT
Share name
Weight
In terms of TK
Jamuna Bank
One Bank
EBL
NBL
Square tex
Padma Oil
Beximco
GP
RN Spin
Square Pharma
Government treasury
bill
Total
05%
05%
05%
15%
10%
15%
10%
10%
05%
15%
05%
500,000
500,000
500,000
1,500,000
1,000,000
1,500,000
1,000,000
1,000,000
500,000
1,500,000
500,000
100%
10,000,000
5%
Share price
(LTP)
19.3
20.4
34.1
22.8
100.2
306
60.8
189.9
28.3
188
Number of
share
25,906
24,509
14,662
65,789
9,980
4,901
16,447
5,291
17,857
7,978
Holding
intention
Short term
Short term
Midterm
Long term
Midterm
Long term
Midterm
Long term
Short term
Long term
5%
5%
Jamuna Bank
5%
15%
One Bank
EBL
NBL
5%
15%
Square tex
Padma Oil
Beximco
10%
GP
RN Spin
10%
Square Pharma
Government treasury bill
10%
15%
11
SHARE ANALYSIS ON TERM BASIS:
In our portfolio there should be two types of share. Short term share, midterm shares and long
term share.
Short term share: The purpose of holding this kind of share will be generating profit by selling
share to secondary market. Those shares where dividend payout, EPS is volatile and share price
are frequently changed will be placed in here. In portfolio revision stage we will take decision
whether we should sell those shares or not. In our portfolio the following shares are taken as
short term share
1. Jamuna Bank
2. One Bank
3. Rn spin
Midterm share: Share in this category will be treated as player for portfolio. The price of this
kind of share is steady and the dividend payout if also steady. If in portfolio revision stage it is
seen by holding this share we are going to make more return we will hold those for dividend.
Well, whether if the change is required the midterm share can be sold. However in here
following share will be treated as midterm share.
1. EBL
2. Square Textile
3. Beximco
Long term: Long term share is defensive share and this will be treated as the base of entire
portfolio. Share which are highly rated, which are giving steady dividend including both cash
and stock for many years are placed in here.
1.
2.
3.
4.
Padma oil
NBL
GP
Square Pharma
12
Company Name: JAMUNA BANK LTD.
Trading Code: JAMUNABANK
Company No: 11134
Business segment: BANK
A short introduction:


Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act,
1994 of Bangladesh with its Head Office currently at Chini Shilpa Bhaban, 3, Dilkusha
C/A, Dhaka-1000, Bangladesh. The Bank started its operation from 3rd June 2001.
JAMUNA BANK is listed in Stock market in the year 2006.
Share percentage in Market:
Share percentage
Sponsor/director
Govt.
Institute
Foreign
Public
58.77%
0%
4.73%
0.19%
36.31%
Pie-chart
Public
36%
Sponsor
/directo
r
59%
Foreign
0%
Institute Govt.
5%
0%
Market price fluctuating scenario for last one year:
13
Financial performance analysis for last Five years:
For the last five years jamuna bank is giving stock dividend 23%, 22% 37.5%, 23.50%, 1B:14
respectively. So definitely it can say that next year it will also announced this type of dividend.
The current Price per Earnings ratio is only 6.03. its indicating that shareholders are willing to
pay Tk. 6.03 for earnings Tk. 1. Where the year end P/E ratio is 11.46, 14.03 and so on. So we
believe this is high time to invest in Jamuna Bank.
The EPS of Jamuna Bank is also quite good enough. Current market price is Tk 19.3. and the
company is giving Eps of 3.71, 4.78, 5.69 and so on.
Net Asset Value (NAV) is also high in here. 20.02, 28.74, 24.55 and so on. So if company goes
for liquidation we will not be harmed.
(Face value Tk. 10.00)
Year
Year End P/E
(Continuing
operation)
Basic EPS
(Continuing
operation)
Dividend
Payout
NAV
52
week’s
range
2007
2008
2009
2010
2011
57.18
9.02
12.65
14.03
11.46
n/a
38.21
5.69
4.78
3.71
1B:14
23.50% Stock
37.5% Stock
22% Stock
23% Stock
n/a
164.53
24.55
28.74
20.02
17.5-38.1
LTP
(Last
trade
price)
19.3
Current
P/E
6.03
14
Company Name: ONE BANK LTD.
Trading Code: ONEBANKLTD
Company No: 11126
Business segment: BANK
A short introduction:


ONE Bank Limited was incorporated in May, 1999 With the Registrar of Joint Stock
Companies under the Companies Act. 1994, as a commercial bank in the private sector.
ONE BANK is listed in Stock market in the year 2003.
Share percentage in Market:
Share percentage
Sponsor/director
Govt.
Institute
Foreign
Public
40.29%
0%
0%
0%
59.71%
Pie-chart
Public
60%
Sponsor
/directo
r
40%
Foreign
0%
Institute Govt.
0%
0%
Market price fluctuating scenario for last one year:
15
Financial performance analysis for last Five years:
For the last five years ONE Bank is giving stock dividend 30%, 55% 32%, 20%, 25%
respectively. So definitely it can say that next year it will also announced this type of dividend.
The current Price per Earnings ratio is only 7.233. It is indicating that shareholders are willing to
pay Tk. 7.23 for earnings Tk. 1. Where the year end P/E ratio is 15.54, 19.49 and so on. So we
believe this is high time to invest in ONE Bank.
The EPS of ONE Bank is also quite good enough. Current market price is Tk 20.4 and the
company is giving EPS of 3.99, 9.18 and so on.
Net Asset Value (NAV) is also good enough in here. 19.35, 23.65, 196.89 and so on. So if
company goes for liquidation we will not be severely harmed.
Face value Tk. 10.00
Year
Year End P/E
(Continuing
operation)
Basic EPS
(Continuing
operation)
Dividend
Payout
NAV
52 week’s
range
LTP
Current
P/E
2007
2008
2009
2010
2011
14.69
12.3
12.97
19.49
15.54
38.97
32.49
46.63
9.18
3.99
25%
20%
32%
55%
30%
176.39
178.24
196.89
23.65
19.35
18.5-574
20.4
7.23
16
Company Name: EASTERN BANK.
Company No: 11112
Business segment: BANK
Trading Code: EBL
A short introduction about


Eastern Bank Ltd. (EBL) began its journey in 1992. Over the years EBL has established
itself as a leading private commercial bank in the country with undisputed leadership in
Corporate Banking and a strong Consumer and SME growth engines.
EASTERN BANK is listed in Stock market in the year 1993.
Share percentage in Market
Share percentage
Sponsor/director
Govt.
Institute
Foreign
Public
6.73%
0%
9.82%
0%
83.45%
Pie-chart
Sponsor Institute
/directo 10% Govt.
0%
r
7%
Foreign
0%
Public
83%
Market price fluctuating scenario for last one year
17
Financial performance analysis for last Five years:
For the last five years EBL is giving stock dividend 35%, 55%, 17%+10.00, 20%, 34%
respectively. So definitely it can say that next year it will also announced this type of dividend.
The current Price per Earnings ratio is only 11.6. It is indicating that shareholders are willing to
pay Tk. 11.6 for earnings Tk. 1. Where the year end P/E ratio is 15.89, 23.57 and so on. So we
believe this is high time to invest in ONE Bank.
The EPS of ONE Bank is also quite good enough. Current market price is Tk 34.1 and the
company is giving EPS of 5.59, 8.5, 5.85 and so on.
Net Asset Value (NAV) is also good enough in here. 31.9, 41.45, 33.77 and so on. So if
company goes for liquidation we will not be severely harmed.
Face value Tk. 10.00
Year
Year End P/E
(Continuing
operation)
Basic EPS
(Continuing
operation)
Dividend
Payout
NAV
52 week’s
range
LTP
Current
P/E
2007
2008
2009
2010
2011
26.44
12.29
12.94
23.57
15.89
40.5
57.52
5.85
8.5
5.59
34%
20%
20.00, 17%
55%
35%
358.63
341.45
33.77
41.45
31.9
30.8-72.9
34.1
11.6
18
Company Name: NBL.
Trading Code: NBL
Company No: 11105
Business segment: BANK
A short introduction:


National Bank Limited Limited has its prosperous past, glorious present, prospective
future and under processing projects and activities. Established as the first private sector
bank fully owned by Bangladeshi entrepreneurs, Justice Ahsanuddin Chowdhury
inaugurated the bank formally on March 28, 1983
NATIONAL BANK is listed in Stock market in the year 1984.
Share percentage in Market:
Share percentage
Sponsor/director
Govt.
Institute
Foreign
Public
30.21%
0%
10.09%
1.01%
58.69%
Pie-chart
Public
59%
Sponsor
/directo
r
30%
Govt.
0%
Institute
10%
Foreign
1%
Market price fluctuating scenario for last one year
19
Financial performance analysis for last Five years:
For the last five years National Bank is giving stock dividend 65%, 95%, 55%, 52%, 55%
respectively. So definitely it can say that next year it will also announced this type of dividend
and we will hold this share for long term.
The current Price per Earnings ratio is only 11.63. Its indicating that shareholders are willing to
pay Tk. 11.63 for earnings Tk. 1. Where the year end P/E ratio is 15.5, 23.98 and so on. So we
believe this is high time to invest in NBL.
The EPS of NBL is also quite good enough. Current market price is Tk 22.8. and the company is
giving EPS of 7.11, 15.57, 7.27 and so on.
Net Asset Value (NAV) is also high in here. 25.06, 43.33, 31.33 and so on. So if company goes
for liquidation we will not be harmed.
Face value 10.00
Year
Year End P/E
(Continuing
operation)
Basic
EPS(Continuing
operation)
Dividend
Payout
NAV
52 week’s
range
LTP
Current
P/E
2007
2008
2009
2010
2011
14.58
19.03
13.69
23.98
15.5
102.47
81.03
7.27
15.57
7.11
55% Stock
52% Stock
55% Stock
95% Stock
65% Stock
433.11
324.92
31.33
43.33
25.06
21. 5 - 74
22.8
11.63
20
Company Name: SQUARE TEXTILE.
Trading Code: SQUARETEXT
Company No: 174406
Business segment: TEXTILE
A short introduction:


In 1997, entered the textile sector with its manufacturing facilities of cotton yarn.
Combining modern technology with skilled manpower under 's unique inspiring,
atmosphere, this new venture soon rose to the top of the local textile industry. Today it
has one of the most sophisticated vertically integrated set-ups.
Square Textile is listed in Stock market in the year 2002
Share percentage in Market:
Share percentage
Sponsor/director
Govt.
Institute
Foreign
Public
61.31%
0%
16.58%
6%
16.11%
Pie-chart
Public
16%
Foreign
6%
Institute
17%
Sponsor
/directo
r
61%
Govt.
0%
Market price fluctuating scenario for last one year
21
Financial performance analysis for last Five years:
For the last five years Square textile is giving stock and cash dividend (16.00, 20%), (16.00,
20%) and so on respectively. So definitely it can say that next year it will also announced this
type of dividend and our intention is to hold this share for long term.
The current Price per Earnings ratio is only 12.87. Its indicating that shareholders are willing to
pay Tk. 12.87 for earnings Tk. 1. Where the yearend P/E ratio is 16.1, 28.66, 25.61 and so on. So
we believe this is high time to invest in Square Textile.
The EPS of Square Textile is also quite good enough. Current market price is Tk 100.2 and the
company is giving Eps of 8.47, 8.79, 5 and so on.
Net Asset Value (NAV) is also high in here. 47.01, 48.54, 47.41 and so on. So if company goes
for liquidation we will not be harmed.
Face value 10.0
Year
Year End P/E
(Continuing
operation)
Basic
EPS(Continuing
operation)
Dividend
Payout
2007
2008
2009
2010
2011
14.25
23.85
25.61
28.66
16.1
8.94
6.89
5
8.79
8.47
25.00, 20%
18.00, 20%
16.00, 15%
16.00, 20%
16.00, 20%
NAV
52 week’s
range
LTP
Current
P/E
433.11
52.69
47.41
48.54
47.01
85-157.9
100.2
12.87
22
Company Name: PADMA OIL CO.
Trading Code: PADMAOIL
Company No: 15302
Business segment: FUEL & POWER
A short introduction:


Padma Oil Company Limited is not only the biggest but also the oldest with its
antecedents stretching well back to the colonial period of British-India. Its ancestral
enterprise “ Rangooon Oil Company “ established petroleum business in this part of the
world by the middle of nineteenth century.
Padma Oil Co. is listed in Stock market in the year 1976
Share percentage in Market:
Share percentage
Pie-chart
Sponsor
/directo
r
0%
Sponsor/director
Govt.
Institute
Foreign
Public
0%
50.35%
25.23%
0%
24.42%
Foreign
0%
Public
25%
Govt.
50%
Institute
25%
Market price fluctuating scenario for last one year
23
Financial performance analysis for last Five years:
For the last five years Padma OIl is giving both cash and stock dividend (50.00 + 50%)
(50.00+50%) (50.00+200%) respectively. So definitely it can say that next year it will also
announced this type of dividend and we are going to hold this share for long term.
The current Price per Earnings ratio is only 15.45. It’s indicating that shareholders are willing to
pay Tk. 15.45 for earnings Tk. 1. Where the year end P/E ratio was 55.34, 62.5 and so on. So we
believe this is high time to invest in Padma Oil.
The EPS of Padma Oil is also quite good enough. Current market price is Tk 306 and the
company is giving EPS of 19.88, 21.69, 46.07 and so on.
Net Asset Value (NAV) is also high in here. 73.36, 80.22, 180.61 and so on. So if company goes
for liquidation we will not be harmed.
Face value 10.00
Year
2007
2008
2009
2010
2011
Year End P/E
(Continuing
operation)
25.56
42.84
56.52
62.5
55.34
Basic
EPS(Continuing
operation)
35.98
47.79
46.07
21.69
19.88
Dividend
Payout
NAV
52
week’s
range
LTP
Current
P/E
60%
50.00, 100%
50%, 200%
50.00, 50%
50.00, 50%
226.28
259.07
180.61
80.22
73.36
235.1600
306
15.45
24
Company Name: BEXIMCO
Trading Code: BEXIMCO
Company No: 99613
Business segment: MISCELLANEOUS
A short introduction:


Today the BEXIMCO Group (“BEXIMCO” or the “Group”) is the largest private sector
group in Bangladesh. BEXIMCO was founded in the 1970’s Since the early days, the
Group has evolved from being primarily a commodities trading company to a leading,
diversified group with a presence in industry sectors that account for nearly 75% of
Bangladesh’s GDP. BEXIMCO’s corporate mission is “Taking Bangladesh to the world”.
BEXIMCO is listed in Stock market in the year 1989
Share percentage in Market:
Share percentage
Sponsor/director
Govt.
Institute
Foreign
Public
13.25%
0%
0%
10.3%
76.45%
Pie-chart
Sponsor
/directo
r
13%
Govt.
0%
Foreign
10%
Institute
0%
Public
77%
Market price fluctuating scenario for last one year
25
Financial performance analysis for last Five years:
For the last five years BEXIMCO is giving stock dividend 50%, 60%, (10.00 +50%) , 15%
respectively. So definitely it can say that next year it will also announced this type of dividend.
The current Price per Earnings ratio is only 7.59. It’s indicating that shareholders are willing to
pay Tk. 7.59 for earnings Tk. 1. Where the year end P/E ratio was 11.07, 14.31 and so on. So we
believe this is high time to invest in Beximco.
The EPS of Beximco is also quite good enough. Current market price is Tk 60.8 and the
company is giving EPS of 42.22, 34.59, 19.08 and so on.
Net Asset Value (NAV) is also high in here. 107.83, 101.96, 72.35 and so on. So if company
goes for liquidation we will not be harmed.
Face value 10.00
Year
2007
2008
2009
2010
2011
Year End P/E
(Continuing
operation)
Basic EPS
(Continuing
operation)
Dividend
Payout
NAV
24.44
14.57
14.31
11.07
1.53
19.08
34.59
42.22
15%
10.00 , 50 %
60%
50%
32.9
72.35
101.96
107.83
52 week’s
range
LTP
Current
P/E
57.8162.7
60.8
7.59
26
Trading Code: GP
Company Name: GRAMEENPHONE LTD.
Company No: 27001
Business segment: TELECOMMUNICATION
A short introduction:

It is a joint venture enterprise between Telenor (55.8%), the largest telecommunications
service provider in Norway with mobile phone operations in 12 other countries, and
Grameen Telecom Corporation (34.2% ), a non-profit sister concern of the internationally
acclaimed micro-credit pioneer Grameen Bank. Grameen Phone is listed in Stock market
in the year2009
Share percentage in Market:
Share percentage
Pie-chart
Govt. Foreign Public
0%
0%
5%
Institute
5%
Sponsor/director
Govt.
Institute
Foreign
Public
90%
0%
4.70%
0.26%
5.04%
Sponsor
/directo
r
90%
Market price fluctuating scenario for last one year
27
Financial performance analysis for last Five years:
For the last three years Grameen Phone is giving cash dividend 205, 120, 60 respectively. So
definitely it can say that next year it will also announced this type of dividend.
The current Price per Earnings ratio is only 13.25. It’s indicating that shareholders are willing to
pay Tk. 13.25 for earnings Tk. 1. Where the year end P/E ratio is 11.69, 31 and so on. So we
believe this is high time to invest in Grameen Bank.
The EPS of Grameen Bank is also quite good enough. Current market price is Tk 189.9. and the
company is giving EPS of 13.99, 7.93, 12.08 and so on.
Net Asset Value (NAV) is also high in here. 23.6, 35.57, 37.14 and so on. So if company goes
for liquidation we will not be harmed.
Face value Tk. 10.00
Year
Year End P/E
(Continuing
operation)
Basic
EPS(Continuing
operation)
Dividend
Payout
2007
2008
2009
2010
2011
n/a
n/a
15.52
31
11.69
2.52
2.46
12.08
7.93
13.99
n/a
n/a
60
120
205
NAV
52 week’s
range
LTP
Current
P/E
21.5
22.7
37.14
35.57
23.6
104.8-228
189.9
13.25
28
Company Name: R. N. SPINNING MILLS LIMITED
Trading Code: RNSPIN
Company No: 17450
Business segment: TEXTILE
A short introduction


R.N.Spinning Mills Limited is the highest contributor in the sector of Acrylic &
Synthetic yarn production in Bangladesh. Actually thinking of object came in the mind in
2003 to value addition within the country by addition backward linkage of Sweater
Industries
R. N. SPINNING MILLS LIMITED is listed in Stock market in the year 2010
Share percentage in Market:
Share percentage
Sponsor/director
Govt.
Institute
Foreign
Public
62.21%
0%
0%
0%
37.79%
Pie-chart
Public
38%
Foreign
0% Govt.
0% Institute
0%
Sponsor
/directo
r
62%
Market price fluctuating scenario for last one year
29
Financial performance analysis for last Five years:
For the last three years RPSPIN is giving stock dividend 35%, 30%, 10%, respectively. So
definitely it can say that next year it will also announced this type of dividend.
The current Price per Earnings ratio is only 3.61. It’s indicating that shareholders are willing to
pay Tk. 3.61 for earnings Tk. 1. Where the year end P/E ratio was 16.27, 30.85 and so on. So we
believe this is high time to invest in RNSPIN.
The EPS of RNSPIN is also quite good enough. Current market price is Tk 28.3. and the
company is giving EPS of 3.58, 5.04 and so on.
Net Asset Value (NAV) is also high in here. 18.97, 16.1, 12.17 and so on. So if company goes
for liquidation we will not be harmed.
Face Value Tk. 10.00
Year
Year End P/E
(Continuing
operation)
Basic EPS
(Continuing
operation)
Dividend
Payout
NAV
52 week’s
range
LTP
Current
P/E
2007
2008
2009
2010
2011
n/a
n/a
n/a
30.85
16.27
7.18
19.37
1.78
5.04
6.58
n/a
n/a
10%
30%
35%
103.59
113.52
12.17
16.1
18.97
20.1-96
28.3
3.61
30
Company Name: SQUARE PHARMACEUTICALS LTD
Trading Code: SQURPHARMA
Company No: 18473
Business segment: PHARMACEUTICALS AND CHEMICALS
A short introduction:


The company was founded in 1958 by Samson H. Chowdhury along with three of his
friends as a private firm. It went public in 1991 and is currently listed on the Dhaka Stock
Exchange.
SQUARE PHARMACEUTICALS LTD is listed in Stock market in the year 1995
Share percentage in Market:
Share percentage
Sponsor/director
Govt.
Institute
Foreign
Public
54.16%
0%
0%
6.7%
39.14%
Pie-chart
Public
39%
Foreign
7%
Sponsor
/directo
r
54%
Govt.
0%
Institute
0%
Market price fluctuating scenario for last one year
31
Financial performance analysis for last Five years:
For the last five years SQUARE PHARMACEUTICALS LTD is giving stock and cash dividend
(30.00+35%), (35%, 30%), (40.00+25%) respectively. So definitely it can say that next year it
will also announced this type of dividend. We are thinking to hold this share for long term.
The current Price per Earnings ratio is only 17.64. It’s indicating that shareholders are willing to
pay Tk. 17.64 for earnings Tk. 1. Where the year end P/E ratio was 26.6, 28.13 and so on. So we
believe this is high time to invest in SQUARE PHARMACEUTICALS LTD.
The EPS of SQUARE PHARMACEUTICALS LTD is also quite good enough. Current market
price is Tk 188. and the company is giving EPS of 16.605, 165.48, 170.51 and so on.
Net Asset Value (NAV) is also high in here. 81.375, 857.52, 905.05 and so on. So if company
goes for liquidation we will not be harmed.
Face value Tk. 10.00
Year
2007
2008
2009
2010
2011
Year End P/E
(Continuing
operation)
11.2
35.9
23.44
28.13
26.6
Basic
EPS(Continuing
operation)
218.61
n/a
170.51
165.48
16.605
Dividend
Payout
NAV
52
week’s
range
LTP
Current
P/E
50.00, 50 %
40.00, 35%
40.00, 25%
35%, 30 %
30.00, 35%
1280.08
n/a
905.05
857.52
81.375
175.52759
188
17.64
32
MAJOR FINDINGS
1. Share price of almost all share are decreasing as trade price graph shows. But our market
has recently faced a huge crash and we think it is recovering.
2. After analyzing the selected share we have found that padma oil, NBL, GP, square
pharma can hold for long term.
3. The possible return will be high if we treat Jamuna bank, one Bank, Rn spin will be treat
as short term.
4. Present P/E (based on current operation) is lower that the company have ever imagined in
past few years. Although the high P/E refers that the people are willing to pay more
money for that share in other words the share are high priced, we are projecting that our
selected share will also face high P/E in near future.
5. We have also focused on NAV (Net Asset Value), our every selected share has enough
NAV, almost same or greater than its Last trade price, so if by any chance company goes
for liquidation we will not be dishonored, although we think that situation will hard to
come.
6. Our selected share has high and steady dividend giving records for both share and stock
price. Although our market has experienced great crash but company’s dividend given
scenario has remain steady, so it indicates that the company will give pair dividend as
earlier.
7. Every share has satisfied Earnings per share. It means that the company is running well
so it is earning well. If this scenario continues we are expecting the company will
declared high dividend.
8. Share from Bank sector, Pharmaceuticals sector, Textile sector, Telecommunication
sector, Fuel and power sector are selected that will make this portfolio more diversified
and it will reduce the risk which is actually the main purpose to make this portfolio.
33
RECOMMENDATION
1. The selected share mainly which are taken for the short term will be highly monitored, so
that the highest possible return can achieved.
2. A high profile portfolio manager will be recruited to manage this portfolio.
3. Market will be monitored sincerely so that the present lucrative share can buy as early as
possible (“lucrative” will be treated as undervalued).
4. If any share in our portfolio are seems to be overvalued than that share will be sold by
immediate revision action.
5. After one year the return of portfolio must be measured to evaluate the portfolio.
6. For revising stage we have analyzed also some other share which are also can be chosen,
a sharp eye will be given on those shares.
7. All shares must buy and sell with minimum amount of transaction cost, so that this cost
cannot reduce the return amount.
8. If any severe problem creates with company, those shares of them which are taken for
long term holding may be sold.
9. Midterm share must be treat with much more skill so that the better use of them are
ensured.
34
CONCLUSION
The portfolio is mainly done to reduce the risk. Our present market has faced a huge crash
recently. So investing in this share market may seem insane. But by doing fundamental and
technical analysis we have shown in our report that our selected shares are attractive to invest.
All financial indicators are giving green sign to invest in those shares. So by hoping the best we
are introducing this portfolio which will be highly monitored and highly analyzed. If the market
is steady and the industry where we are investing is good we will be able to generate higher
return. Although if its not we are expecting much lower risk than others.
35
BIBLIOGRAPHY
1. http://pages.stern.nyu.edu/~adamodar/New_Home_Page/background/portmgmt.htm
2. www.dsebd,org
3. Annual report of JAMUNA BANK LTD. (2007-2011)
4. Annual report of ONE BANK LTD (2007-2011)
5. Annual report of EASTERN BANK (2007-2011)
6. Annual report of NBL (2007-2011)
7. Annual report of SQUARE TEXTILE (2007-2011)
8. Annual report of PADMA OIL CO (2007-2011)
9. Annual report of BEXIMCO (2007-2010)
10. Annual report of GRAMEENPHONE LTD (2007-2011)
11. Annual report of R. N. SPINNING MILLS LIMITED (2007-2011)
12. Annual report of SQUARE PHARMACEUTICALS LTD (2007-2011)
13. Investment by s.kevin
14. Investment (8th Edition) by Zvi bodie, Alex kane, Alan J. Marcus
36