Page 101 - CCL AR 2017 Final

Share Price Sensitivity Analysis

Following are the major factors which might affect better production efficiencies. Issues at production
the share price of the Company in the stock negatively affect the financial performance of the
exchange: Company and therefore, many also affect the share
price. Share price is also affected by the addition of
Fuel and Oil Prices new plant.
Due to the on-going energy crises, supply of gas and
electricity is often disrupted to industrial Consumer Demand
undertakings. Accordingly, the entire manufacturing Increase in demand of cement may result in increase
industry is facing operational difficulties. This forces in market price of bag which will contribute towards
the Company to resort the expensive alternatives to better profitability and Earning Per Share (EPS), which
run operations which directly affects the Company’s will ultimately increase the share price.
financial performance. Volatility in international oil
prices especially coal also affect the share price. Variation in Variable Cost
Any Increase in variable cost (mainly includes Coal,
Law and Order Situation Power and Raw Material cost) may badly effect the
Unstable law and order situation often results in gross margins and will resultantly fall in the
disruption of business activities and hindrance in profitability and fall in EPS. This may badly effect the
supply chain that negatively impacts on the market price of the share downward.
Company’s performance.
Variation in Fixed Cost
Change in Government Policies Fixed cost which mainly consists of Financial
Any change in government policies related to cement Charges, Exchange losses, and other overheads. If
sector may effect the share price of the Company. If SBP discount rate goes up, rupee devaluation occurs
policy change is positive than share price will and increase in inflation happens than net
increase, otherwise vice versa. profitability of the Company will be effected and will
have negative effect on the EPS which results into fall
Plant Operations in share prices. If the said factors happen on the
Stable plant operations lead of higher production and positive sides than share price will improve.

Share Prices - Trend v/s Volume Traded
3,000,000 Financial Year 2016-2017 250

2,500,000
200

Volume Traded 2,000,000 150 Share Price per Share

1,500,000

100
1,000,000

50
500,000

0 0
Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

Volume Traded Share Price per Share

99
Annual
Report 2017