MS AR 2018 (1)
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SH<strong>AR</strong>E PRICE<br />
SENSITIVITY ANALYSIS<br />
Following are the major factors which might effect the share price of the Company in the stock exchanges:<br />
1) Increase In Demand:<br />
Increase in demand of steel may result in increase in market prices which will contribute towards better profitability and<br />
Earning Per Share (EPS) , which will ultimately increase the share price.<br />
2) Increase In Variable Cost:<br />
Any increase in variable cost (Mainly includes Furnace oil, Power and Raw Material cost) may badly effect the gross<br />
margins and will resultantly fall in the profitability and fall in EPS. This may badly effect the market price of the share<br />
downward.<br />
3) Increase In Fixed Cost:<br />
Fixed cost which mainly consists of Financial Charges, Marketing expenses, and other overheads. If SBP discount rate<br />
goes up, rupee devaluation occurs and increase in inflation happens than net profitability of the Company will be effected<br />
and will have negative effect on the EPS which results into fall in share prices. If the said factors happen on the positive<br />
sides than share price will improve.<br />
4) Change In Government Policies:<br />
Any change in Government policies related to steel sector may effect the share price of the Company. If policy change is<br />
positive than share price will increase, otherwise vice versa.<br />
Annual Report <strong>2018</strong><br />
81
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