NML: Price Earnings Trend
NML’s Price earnings trend has been moving upwards in the 4 years 2011-2014. It has increased to 7.14 times in 2014 from 3.65 in 2011. This is an increase of 3.49 in 4 years. NML’s earning per share in 2013 and 2014 were Rs.16.63 and Rs.15.6 respectively. NML’s major earnings is derived from export business. It has maintained steady earnings per share over the years as a result of persistent profitability and it speaks well of its management proficiency (Annual Report, Director’s report, 2014).
NML announced earnings of Rs.5.51 billion in Fiscal year 2014, which were lower by 5.7% as compared to last year’s earnings of Rs.5.85 billion http://www.brecorder.com/cotton-a-textiles/185:pakistan/1226960:nishat-mills-announces-rs-551-billion-earnings-in-fiscal-year-2014/ , as is reflected in earnings per share above.
Dividend Per Share
NML has paid out cash dividends every year, which has increased steadily over the years from Rs.3.3 in 2011 to Rs.4.00 in 2014 reflecting their profitability. NML had paid out a dividend per share of Rs.3.5 even in FY 2012, when Pakistan’s textile industry had suffered greatly due to energy shortage http://paktribune.com/business/news/Textile-exports-drop-as-energy-shortages-bite-9758.html .
NML had a net increase in cash inflow of Rs.1.6 billion increasing cash and cash equivalents at year end to stand at Rs.2.8 billion from Rs.1.1 billion in 2013 (Annual Report, 2014).