The scrip of the Almarai Company under the agriculture and food sector has been given a buy recommendation as it is a bull in the market which is also outperforming most of the other players of this sector. Almarai Company is one of the attractive stocks on the Saudi Stock Exchange Tadawul. The stock is actively traded. Eqarani (2012) has reviewed Almarai to be the largest integrated dairy company in the world, with a well recognized brand that was ranked number three in Forbes’s ‘Top-40 Arab Brands’ list. A snap shot taken out of the exchange and presented as Fig 1 depicts its active trading patterns. Fig1 The company has the authorized capital of 4000 million Saudi Arab Riyals and has issued 400 million shares of par value of 10 Riyals. The stock is trading at a level above 50 Riyals on Tadawul stock exchange. The company has a paid capital of 4000 million Riyals and its floated issued shares are 165,409,795. The company belongs to the agriculture and food sector which is a tremendously growing sector of the economy of Saudi Arabia. The growth for this sector on the Tadawul in last one year is 29.21%. There are reasons. Saudi Arabia is the largest market in the middle-east for agricultural and food products. This sector of economy in Saudi Arabia is growing at a GDP of 8%. Agriculture products in Saudi Arabia account for more than 25% of the private sector investments. The companies not only produce for the local market but they are eying the export market also in the surrounding middle-east countries. All the more, the Saudi government has set its priority on becoming self dependent on the food front because still it is importing 70% of the food items. It is boon time for companies including multinationals for meteorically rise in this progressing economy. Almarai Company already holds a significant place in the economy. The company enjoys a robust health and is a mature company. It was established way back in 1977. The then chairman of the company Prince Sultan bin Mohammed bin Saudi Al Kabeer worked with a vision to transform the tiny dairy farming industry into an efficient and professional giant that should be able to cater to the growing demands of its population and that too by making its products available at affordable costs. A few graphs presented below depict the consistent good performance of the company in last few years. Graph 1 (Years range from 1 to 4 on X-axis is 2008 to 2011) The Graph 1 shows that the revenue earned by the company is rising at a consistent rate of 8 to 10 per cent each subsequent year. This is an indicator of robust market position of the company. Graph 2 (Years range from 1 to 4 on X-axis is 2008 to 2011) The scenario of operating income is comfortable. The operating income in Dec’ 2011 is 1517 million riyals incrementing by 59 million riyals in comparison to the operating income level of 1459 million riyals in Dec’2010. In contrast to this the incremental enhancement in the operating income in Dec’2010 was 494 million riyals in comparison to its level of 965 million riyals in Dec’ 2009. This is a point of concern but at the same time the capital investment in the expansions done by the company explains this low incremental increase in Dec’2011. It is not that heavier in comparison to
Recommendation for a security on the Tadawul stock exchange (Name of Student) (Name of Institute) Abstract The paper presents the real life snap shots of a selected security on the Tadawul stock exchange with the objective to analyze and valuate it before giving a buy recommendation to a client by the small investment firm KSA…
The aim of this research to verify and to examine the investment atmosphere and different kinds of investments; to recognize and to elucidate the logic of investment procedure and the contents of its’ each phase; to distinguish concepts of theory of portfolio and apply its’ principle in the procedure of investment portfolio configuration; to determine the optimal investment performance appraisal systems.
Coca-cola Corporation has introduced more than 500 brands and some of the renowned brands are Coke, Diet Coke, Caffeine Free Coca-Cola and Coca-Cola Zero. The company has its presence in more than 200 countries of the world and is more renowned as Coke. More than 1.7 billion people are served every day with the products of Coca-Cola.
It also makes a comparative assessment of investment outcomes which clearly indicate that UK-based REITS have adopted a market-correlated approach to increase investors' gains with little regard for strategic-operational environment and its multifaceted regulatory bottlenecks.
Valuation models including DCF and EVA will made applied using company’s financial information and some market ratios.
Coca-Cola Corporation (or “CC”) is one the leading brands of the world that offers non-alcoholic beverages. The company is an
The firm can thus place its price wherever it wishes to, and it may or may not take into account the demand of the people in order to supply. If the firm places the price of the product at a higher range then the consumers are bound to buy it at that price due to the lack of
In 2011, BC’s real GDP got a growth of 2.9% which expand by 3.2% than previous year. The economical growth has recovered positively after the global financial recession of 2008. BC got the success in the areas like international trade, export and import.
Strategies involved in creating market share and profitability for this company are the division of work activities into units as:
-The other big unit Budget is a chief rental car provider fighting its way through the most value conscious segments of the travel
It had a good flow of activities and the staff was very dedicated and skilled. The quality of food was also very high, enhancing loyalty of customers. The small business made a lot of profit, considering its small size. However, employees worked
11 pages (2750 words)Research Paper
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