Fakiha Tariq

On average, Ittehad Chemicals Limited (ICL) generated negative stock returns for its shareholders in the first six months (July-Dec) of the ongoing fiscal year 2022-23, reports WealthPK. ICL’s loss margin in its shareholders’ wealth stood at 0.02%, almost the same compared to average loss of 0.03% experienced by the market as a whole in 6MFY23.

Whereas, ICL stock returns showed a moderately positive correlation with the market returns in 6MFY23. During the 6MFY23, the correlation coefficient between ICL and market returns was reported to be 0.3. During the first quarter (July-Sept) of FY23, the ICL stocks suffered a market value loss of 0.01%, whereas it had gone up to 0.04% in the second quarter of FY23.

During 6MFY23, ICL stock opened at the price of Rs28.40 on July 1, 2022, and ended in a dropped value of Rs27.50 on Dec 30, 2022. Ittehad Chemical Limited has been trading under the symbol of ICL on the Pakistan Stock Exchange as the 12th largest company with a market cap of Rs2.8 billion in the chemical sector.  

Incorporated in 1991, ICL is now a leading manufacturer and seller of industrial chemicals in Pakistan. In the first quarter of FY23, ICL remained profitable and earned a gross profit of 10.36% or Rs581 million from the sales of Rs5.6 billion. ICL net profit margin for 1QFY23 was reported to be 2.44%, whereas it produced earnings of Rs1.37 per share for its shareholders.

ICL also earned a gross profit of 12.20% in the first six months of FY22. With a net profit margin of 2.70%, ICL reported an EPS value of Rs1.83 apiece in 6MFY22.

Credit : Independent News Pakistan-WealthPk