Doctor in PSX

Understanding ENGROH’s buyback: what does it mean for EPS? -Using 36,231,994 shares repurchased—3.008% of the original shares—and assuming cancellation, the remaining share count becomes 96.992%. With unchanged earnings, this increases EPS by 3.101%, calculated as 1 ÷ 0.96992 − 1. Add underlying earnings growth, and the impact becomes clearer: • 1% earnings growth translates into 4.132% EPS growth. • 2% earnings growth translates into 5.163% EPS growth. Fewer shares mean each remaining share represents a larger slice of the company’s earnings. -What if the same cash had been distributed as a dividend instead? Assuming the expenditure equates to a 3.008% dividend yield, a 15% dividend tax leaves 2.5568% available for reinvestment. At the theoretical ex-dividend price, this buys 2.6361% additional shares. -Reinvestment increases your shareholding rather than company EPS, so the fair comparison is the earnings attributable to your total holding. With dividends reinvested, these increase by 3.662% at 1% underlying growth, or 4.689% at 2% growth, compared with 4.132% and 5.163%, respectively, under the buyback. #ENGROH #PSX #KSE100