Hifsa Raja

Pakistan Stock Exchange firms that offer global IT services represent a fantastic investment opportunity and have the potential to offer high returns to investors, particularly during periods of political and economic unrest. This was stated by Muhammad Imran, equity manager of Fair-Trade Capital Securities Private Limited.

He also explained why returns remain intact for the IT firms. Just because their revenue is derived from sources outside of Pakistan, they are rarely impacted by any upheaval taking place locally. During an exclusive interview with WealthPK, Imran listed a few companies that, despite the current circumstances, have the ability to produce an unbroken return stream in the near future. “Investors should think about investing in NetSol Technologies since it is an excellent investment opportunity. They might also think about Orient, Octopus Digital Limited, and TRG Pakistan Limited.”

WealthPK: What distinguishing characteristic of certain businesses enables them to thrive when the market is low?

Muhammad Imran: Some publicly traded companies are successful on the stock market because they have the distinguishing characteristic of running many side businesses in addition to their core activity, which enables them to thrive when the market is low. The Bestway Group has grown into a diverse global corporation with holdings in cement, wholesale, the financial sector, pharmacy, and other businesses.

WealthPK: Which company on PSX has the potential to grow in near future?

Muhammad Imran: Lucky Cement has investment potential because its share prices are currently low and will rise soon. In addition to making cement, the firm also engages in other industries, such as vehicle production and sustainable energy. So, currently investing in this company will benefit in the future.

WealthPK: Is Lucky Cement planning any initiatives that may boost its stock price in future?

Muhammad Imran: According to Lucky Cement, the expansion of the Pezu cement factory in Khyber Pakhtunkhwa province to 3.15 million tonnes per annum is proceeding as planned and is anticipated to cost Rs30 billion. The opening of this brownfield expansion in the nation's north is planned for December 2022. According to the company's official statement to the PSX, Lucky Cement's production capacity would increase to 15.3 million tonnes per annum upon project completion. This news is expected to uplift the company’s stock price.

WealthPK: What special benefits does Fair Trade Capital Securities Private Limited provide to its investors?

Muhammad Imran: Fair Trade Securities is a brokerage company that takes a practical stance. We provide our investors with a real-time trading analysis. Without the investor's instruction or approval, our brokerage does not pass any entry, which is why there are no fictitious or numerous entries. There is no single instance of fraud against our brokerage. The investor benefits greatly from the relatively low commission fee. Our aim is to protect and assist our clients by offering real-time trade information.

Annual Performance

During the fiscal year 2020-21, the company generated operating revenue of Rs28.50 million against Rs15.77 million in 2019-20, registering an increase of 81%.  The operating profit for FY21 stood at Rs19.45 million, recovering from a loss of Rs27.34 million in FY20 and registering a 171% decrease in loss. The profit-before-tax for FY21 was Rs21.81 million compared to a loss of Rs25.39 million in FY20, showing a 186% decrease in the loss. Similarly, the profit-after-tax for FY21 stood at Rs19.25 million as compared to a loss of Rs25.65 million in FY21, showing a 175% decrease in loss.

Fair-Trade Capital Securities (Pvt) Ltd is a TREC (Trading Right Entitlement Certificate) holder of the Pakistan Stock Exchange. It is also registered with the Securities and Exchange Commission of Pakistan to provide securities brokerage services. The company is amongst the most prominent brokerage houses in Pakistan. It has a decade-long experience in the brokerage business as it has been providing premium quality financial services to clients since 2000. In terms of market share, the firm is ranked in the top tier of equity brokers. It has its corporate headquarters in Karachi and a branch office in Lahore.

Credit : Independent News Pakistan-WealthPk