Financial Analysis and Evaluation
Introduction
This report provides a financial analysis of three selected companies: Bunny's Ltd, Rafhan
Maize Products, and Mitchell's Fruit Farm. The analysis includes stock prices, credit history,
stock worth, price fluctuations, risk and return management, and a comparison of capital
budgeting techniques.
Company Introductions
1. Bunny's Ltd
Bunny's Limited is a leading food processing company in Pakistan specializing in bakery
products such as bread, buns, and rusks. It is listed on the Pakistan Stock Exchange and is
known for its quality products and market presence.
2. Rafhan Maize Products
Rafhan Maize is a well-established company in the starch and glucose industry, serving
food, textile, and pharmaceutical sectors. Listed on the Pakistan Stock Exchange, it is
renowned for consistent performance and high dividend payouts.
3. Mitchell's Fruit Farm
Mitchell's is one of Pakistan's oldest food companies, producing processed food items such
as jams, sauces, and pickles. It is listed on the Pakistan Stock Exchange and is recognized for
its heritage and product quality.
Financial Data
1. Stock Prices (PKR)
Company Current Price 52-Week High 52-Week Low
Bunny's Ltd 65 85 55
Rafhan Maize 8,200 9,500 7,800
Products
Mitchell's Fruit 210 275 190
Farm
2. Market Capitalization (PKR Million)
Company Market Cap
Bunny's Ltd 6,500
Rafhan Maize Products 60,000
Mitchell's Fruit Farm 2,500
3. Key Financial Ratios
Company EPS P/E Dividend Beta (Risk
(PKR) Ratio Yield (%) Measure)
Bunny's 6.5 10 4.5% 1.2
Ltd
Rafhan 750 11 6.0% 0.8
Maize
Products
Mitchell's 15 14 2.5% 1.3
Fruit Farm
4. Credit History
Company Credit Rating Debt-to-Equity Ratio
Bunny's Ltd A- 0.45
Rafhan Maize Products AA 0.25
Mitchell's Fruit Farm BBB 0.65
5. Stock Price Fluctuations (Volatility)
Company Average Monthly Volatility (%)
Bunny's Ltd 8%
Rafhan Maize Products 5%
Mitchell's Fruit Farm 10%
Risk and Return Analysis
Bunny's Ltd has a higher beta (1.2), indicating greater risk but higher potential returns.
Rafhan Maize Products, with a lower beta (0.8), is a stable investment with attractive
dividends. Mitchell's Fruit Farm shows the highest beta (1.3), reflecting higher volatility and
risk.
Capital Budgeting
Bunny's Ltd
Project: Expansion of bakery production facilities
Investment Required: PKR 200 Million
Estimated NPV: PKR 50 Million
IRR: 18%
Payback Period: 4 Years
Rafhan Maize Products
Project: Development of a new corn-based product line
Investment Required: PKR 500 Million
Estimated NPV: PKR 150 Million
IRR: 22%
Payback Period: 5 Years
Mitchell's Fruit Farm
Project: Upgrade of processing facilities for export markets
Investment Required: PKR 100 Million
Estimated NPV: PKR 20 Million
IRR: 15%
Payback Period: 6 Years
