ISLAMABAD: Investors are advised to park their money in the steel industry as its future outlook is quite bright, keeping in view the post-flood reconstruction activity and the several ongoing hydropower projects.
This was stated by Sajjad Muzaffar Chaudhary, the equity manager at Adam Usman Securities Limited.
During an exclusive interview with WealthPK, he also said Pakistan’s economy had a lot of room to grow industrially, stressing that a steady industrial and economic progress relied on a smooth supply of steel.
WealthPK: What advice would you like to give to investors amid rather volatile stock market conditions?
Sajjad Muzaffar Chaudhary: The market is anticipated to stay range-bound given the political and economic headwinds, so investors should watch the evolving developments before making an investment decision.
WealthPK: What is your take on investors constantly purchasing and selling shares?
Sajjad Muzaffar Chaudhary: The current situation shows that the market is holding, so investors should hang onto their securities for a while. Constantly purchasing or selling will not be helpful; hanging onto shares for some time will be beneficial.
WealthPK: Which companies to invest in if we choose the steel sector for investment?
Sajjad Muzaffar Chaudhary: I would recommend an investor to think about the International Steel Limited as the company’s exports are robust and has its operations in over 33 countries. Mughal Steel is also a fantastic option because of its high returns.
WealthPK: What other industry can you recommend to investors for a strong return?
Sajjad Muzaffar Chaudhary: The cement industry is a good choice for investors. DG Khan Cement, Maple Leaf Cement, and Pioneer Cement are a few of the businesses to consider for investment. Kot Addu Power Company Limited and Engro Corporation are two other businesses with solid returns.
WealthPK: Why an investor should invest through Adam Usman Securities Private Limited?
Sajjad Muzaffar Chaudhary: Both local and foreign investors trust us because of our knowledge and trading prowess. Even though we don’t have an RDA (Roshan Digital Account), we do offer accounts for overseas investors. We have the investment accounts of foreigners. For 19-20 years, we have been trading in the market. We are the company with the biggest fund in the capital market.
Performance in 2020-21
The fiscal year 2020-21 saw no growth for the company as far as revenue generation was concerned as the firm’s revenue during the year stood unchanged at Rs1.2 million compared to the fiscal year 2019-20.
But the company suffered a before-tax loss of Rs443,604 compared to the before-tax profit of Rs936,619 in FY20, showing a loss of 147%.
Similarly, the company also sustained an after-tax loss of Rs371,416, compared to the after-tax profit of Rs665,000 in FY20, showing a loss of 156%.
Company profile
Adam Usman Securities Private Limited was incorporated on April 14, 2008 as a corporate member of Pakistan Mercantile Exchange.
According to Muzaffar Chaudhary, the firm’s equity manager, “We are serving our clients throughout Pakistan, and are committed to providing the best services in the area of commodity trading.”
“Our activities help create a more efficient market. Adam Usman Securities continuously searches for value addition for its clients, while never losing the value of business judgment and principles. We continuously work for the value of our clients.”
