Market value of top engineering firms drops 19% in 2QFY23

ISLAMABAD: The average market value of the top five companies of the engineering sector dropped 19% in the just-ended second quarter (Oct-Dec) of the ongoing fiscal year 2022-23, shows an analysis of the firm’s financials conducted by WealthPK.
The engineering sector on Pakistan Stock Exchange is represented by 18 companies with a total market capitalisation of Rs77.2 billion.
In terms of market capitalisation, International Steels Limited (ISL) is the largest company with a market cap of Rs19.3 billion, followed by Mughal Iron & Steel Industries Limited (MUGHAL), which has a market cap of Rs15.7 billion. International Industries Limited (INIL) and Agha Steel Industries Limited (AGHA) with a market cap of Rs9.8 billion and Rs7.9 billion, stand third and fourth, respectively.
Aisha Steel Mills Limited (ASL) with a market cap of Rs7.3 billion is the fifth largest company in the engineering sector.
In the 2QFY23, the top five engineering companies lost Rs3.1 billion collectively in market capitalisation.
MUGHAL’s market value decreased from Rs21 billion to Rs16 billion, thus it sustained the highest loss of 25%. The second highest loss was reported by INIL of 23% in 2QFY23 as its market value dropped from Rs13 billion to Rs9.9 billion.
With a market value decline of 19% from Rs9.3 billion to Rs7.5 billion, ASL experienced the third-highest loss during 2QFY23. ISL with a market loss of 17% was the fourth loser among the top five engineering companies in 2QFY23.
AGHA experienced the lowest market value loss as its value dropped from Rs9.4 billion to Rs8.4 billion in 2QFY23 at 11%.

Engineering stock returns in 2QFY23

In 2QFY23, on average, the top engineering companies experienced more market value loss than the overall market.
Compared to the overall average market return of 0.04% for 2QFY23, AGHA reported a market value loss increase of 0.12%.
ISL and ASL experienced 0.24% and 0.27% decline in value than the overall market.
INL’s average stock returns decreased by 0.36% in 2QFY23.
Out of the top five engineering firms, MUGHAL reported the highest decline in the stock returns compared to overall market as its stock returns declined by 0.41% in comparison to market returns of 0.04%.