KARACHI: On Monday, Pakistan Stock Exchange (PSX) announced the recipients of the ‘Top 25 Companies Award’ for the year 2019. As per tradition, the criteria for selecting such companies was also updated in 2019 in line with the evolving business environment and requirements.
For the said year, the pre-requisites included a minimum distribution of 30% (including at least 15% cash dividend), shares traded 50% of the total trading days during the year, and that the company is not in the defaulters’ segment of the exchange or trading in its shares have not been suspended on account of violation of Listing Companies & Securities Regulations of the exchange during the said year.
The top 25 companies award is a tradition of PSX which goes back to 1978. Historically, the best performing listed companies in Pakistan are awarded this distinction. Broadly speaking, companies which have outperformed others in the spheres of corporate governance, financial performance, and have added to shareholder value based on specific quantitative criteria, amongst other factors, make it to the Top 25 Companies List.
This award takes into account the excellent performance metrics of such companies and recognises the able guidance of their boards and strong management. By awarding and recognising such role models, PSX seeks to promote more such listed companies to come to the fore and make their rightful claim on the award by virtue of their excellent performance and contribution to Pakistan’s economy.
While making the announcement, the MD & CEO of PSX, Farrukh H. Khan, stated, “Top 25 Companies Award is the most prestigious recognition of overall corporate performance in Pakistan. I would like to congratulate all the companies that have achieved this distinction for 2019. They are leaders and role models for other corporates to emulate. These companies have created tremendous shareholder value, contributed significantly to Pakistan’s economy and have projected a positive image of Pakistan globally.
He further stated, “I am also excited to share that for the year 2020, PSX has further improved the criteria for the Top 25 Companies award to take into account current trends and developments in the investment industry. This includes focusing on total shareholder returns rather than just dividends, reporting on diversity and sustainable development goals (SDGs), amongst others changes. “
In 2019, the distribution of marks awarded to the companies was based on the criteria of capital efficiency (20.5% marks), dividend distribution including bonus (20% marks), growth in operating revenue (6% marks), change in EBITDA margin (6% marks), free-float of shares (10% marks), turnover of shares (2.5% marks), corporate governance & investor relation (35% marks). This brings the total to 100% marks signifying the different criteria for selecting companies for the Top 25 Companies Awards.
The companies that made it to the Top 25 Companies Awards list in 2019, in order of their performance ranking, are:
- Fauji Fertilizer Company Limited 14. Pakistan Oilfields Limited
- Nestle Pakistan Limited 15. Bata Pakistan Limited
- Lucky Cement Limited 16. International Industries Limited
- Habib Bank Limited 17. MCB Bank Limited
- Archroma Pakistan Limited 18. International Steels Limited
- Engro Fertilizers Limited 19. Millat Tractors Limited
- Security Papers Limited 20. Agriautos Industries Limited
- Bank AL Habib Limited 21. Engro Corporation Limited
- United Bank Limited 22. EFU General Insurance Limited
- Colgate – Palmolive (Pakistan) Limited 23. ZIL Limited
- Mari Petroleum Company Limited 24. AGP Limited
- Attock Petroleum Limited 25. Gadoon Textile Mills Limited
- Dawood Hercules Corporation Limited