Beruflich Dokumente
Kultur Dokumente
(PEL)
Introduction and Financial Analysis
History
Pak Elektron Ltd. is one of the oldest and amongst the leading Home Appliances
Manufacturers and Distributors in Pakistan. Established is 1956, the company has an
annual turnover of Rs 11 billion and is the only company in consumer electronics
industry listed on the Karachi Stock Exchange.
In 1981 the Home Appliances Division was also established. The company specializes
in the field of Major Domestic Appliances, with over 25 years of experience.
Vision & Mission
Vision
To Excel in providing engineering goods and services through continuous
improvement.
Mission
To provide quality products and services to the complete satisfaction of our customers
and maximize returns for all stake holders through optimal use of resources. To
promote good governance, corporate values, and safe working environment with
strong sense of social responsibility.
Ratio Analysis
Liquidity Ratios:
Current Ratio = Current Asset
Current Liabilities
=2.52
Acid Test Ratio/Quick ratio = Quick Assets
Current liabilities
=1.61
Cash to current liability = cash
Current liabilities
=0.07
The standard value for the current ratio is 2:1 the company current ratio shows that it
have maximum current assets to cover his current liability and quick ratio also shows
the favorable result because it have 1.61 assets against 1 liability. The standard value
for quick ratio is 1:1. Current assets include inventories, trade debts short term
advances, deposits, prepayments and other receivables, short term investments,
current tax assets and cash and bank balances. With an aggregate balance of Rs.19,431
million at the close of 2015, the current assets recorded an increase of Rs. 7,781 million
since 2010 mainly on account of increase in stock in trade and trade debts due to
increase in business volume in past 6 years. Current liabilities of the Company, over the
last six years, have decreased by Rs. 1,284 million to Rs. 7,722 million at the close of
2015 in spite of tremendous volume increase, primarily on account of equity injection
through issue of right shares and restructuring of short term debt into long term debt.
Turnover/activity ratio
Inventories, Receivables and Creditors days at 129 days, 92 days and 16 days for the
year 2015 are slightly improved as compared to previous trend of 131 days, 95 days
and 21 days respectively in year 2014. Total asset turnover ratio recorded at 0.69
times in year 2015 against 0.63 times for the year 2014 showing considerable
improvement from 0.48 times of 2011.
Profitability Ratio
Rise in cost of sales owing to increased raw material cost resulted in a reduction in
gross profit margins for 2015. However due to some economies in operating and
financial costs net profit margin for the year is increased by 0.54%. Consequently,
return on capital employed also increased by 0.58% in comparison with 2014.
Consistent profitability growth resulted in highest ever performance during the year
since 2010.
Market Ratio
Earnings per share = Earnings after tax Preferred dividends (if any)
Equity shares outstanding
=7.13 rupees
Dividend per share = Earnings paid to the ordinary shareholders
Number of ordinary shares outstanding
=0.13 rupees
Dividend payout ratio=Total dividend paid to equity share holders
Total earnings available to equity share holders
=1.75%
Price earnings (P/E) ratio = Market price of share
Earnings per share
=8.78 time
Interpretation
As a result of increase in profits, the Company's earnings per share was recorded at
Rs. 7.13 per share. Price to earnings ratio improved by 2.59 times as compared to
2014 as the market price of Company's share rose from Rs. 40.93 at the close of 2014
to Rs. 62.54 as at December 31, 2015.
Organization Hierarchy
Types of Product
Because the PEL produce consumer durable goods, so product development is usually
done in following ways:
Through Extensive Market Research.
Involving the channel and end users
Test Market with the help of Focus Group
At final Stage it will be launch into the market.
Packging
Play a very important role especially in home appliances, appearance and strength the
material give a good quality image insight.
Here are five key things to consider when developing the packaging strategy.
Do have an attractive and appropriate business identity package.
Do have basic marketing material (or Brochure).
Have you design a basic strategy for what services you will offer.
Do you have basic logistic plan.
Have you put some attention on your personal package, your personal Presentation?
Product Price Determination &
Strategy
Product cost plus price methodology determine the product price, competitors price positioning of
similar model also taken into consider in this regards. Aggressive activities are to be considered to
promote it.
Budget for these is Approx Rs. 100 Million
Print Media
Mass Media
Electronics
Out Door
Direct Mail
Sales promotion (Through incentives Schemes)
Local Cable etc.
Product Life Cycle
As an investor we suggested that Pak elektron ltd have good financial position than
orient his liquidity position is also strong than orient Pak elektron limited show more
efficiency and profit from previous year and the earning per share. Share per price is
also increase continuously from previous year which shows that company increase his
efficiency continuously. We suggest to the investors who want his investment for
longtime invest his money in pak elektron because he increase his profitability and
market share continuously from previous year as compare to the orient he has less
efficiency and profitability and the growth rate of the orient is very slow than pak
elektorn limited.
Recommendations
The company should take measures to improve the quality of their products by
improving the process. Thus the company is advised to take steps towards improving
the quality of its products, other wise it will lose a lot of potential customers to their
competitors.
To gain more competitive advantage over their competitors, PEL has to work on their
distribution network.
PEL more focus should be on electronic media to get competitive advantage over the
competitors. They have to increase their advertising expenditures.