PKR
ZARIA FinanceZARIA Finance
LEARN TO RESEARCH

Understand a company before you invest.

Learn six simple ways to study a PSX-listed company, understand its financial numbers and practise with a fictional example.

COMPANY RESEARCH
Look beyond the share price.

Read. Compare. Ask questions.

READ THE FULL PICTURE
Annual reportFinancial statements
Start Learning 6 Research Steps · One fictional case study
BUILD YOUR RESEARCH HABIT

Six questions. A clearer picture.

Start with the business, then explore the numbers.

Jump to practice
0 of 6 research steps completed

Take one topic at a time. Every question adds context.

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01

Revenue

Revenue is the money a company earns from sales.

WHAT TO LOOK FOR

Sales over the last five years and whether they grow steadily

ASK YOURSELF

Is growth consistent? Does it depend on one customer or product?

02

Profitability

Profit is what remains after the company's costs.

WHAT TO LOOK FOR

Net profit and profit margin over time

ASK YOURSELF

Is profit growing along with sales? Why did margins change?

03
EquityDebt

Debt

Borrowing can fund a business, but creates repayment obligations.

WHAT TO LOOK FOR

Debt compared with equity, and interest cost compared with profit

ASK YOURSELF

Could the company still pay its interest if earnings fell?

04

Dividend history

A dividend is a payment a company may make to its shareholders.

WHAT TO LOOK FOR

Dividend per share in each year

ASK YOURSELF

Is the dividend stable and covered by profit, or has it been cut?

05
PRICEEARNINGSP/E

Valuation

Valuation helps you understand the price relative to a business's earnings.

WHAT TO LOOK FOR

P/E ratio compared with the company's own history and similar companies

ASK YOURSELF

What am I paying for each rupee of earnings, and why?

06
IndustryCostsRegulation

Business risks

Every business faces uncertainty. Learn what could go wrong.

WHAT TO LOOK FOR

The risk section of the annual report, industry trends and regulation

ASK YOURSELF

What could hurt this business, and can I explain it in one sentence?

Where to look: the company's annual and quarterly reports, and company announcements published through PSX.

PRACTISE WHAT YOU LEARN

Let's research a fictional company.

Explore the numbers and learn what questions investors should ask.

FICTIONAL · FOR LEARNING ONLY
IC

Illustrative Co. Ltd

Illustrative Co. Ltd is made up for practice. The numbers are not real.

Select a year
Revenue (PKR m)
1,650PKR million · 2026
Net profit (PKR m)
105PKR million · 2026
Debt-to-equity
1.1ratio · 2026
Dividend per share (PKR)
1.5PKR per share · 2026
View exact fictional figures · 2022–2026
Illustrative Co. Ltd — fictional financial data
Measure20222023202420252026
Revenue (PKR m)10001150132014801650
Net profit (PKR m)120138150128105
Debt-to-equity0.40.50.70.91.1
Dividend per share (PKR)44.5531.5

Valuation (illustrative): share price PKR 60, latest earnings per share PKR 4.2, so a P/E of about 14.3 and a dividend yield of about 2.5%. Risks noted: relies on one industry, imports raw materials, and borrowing costs are rising.

What do these numbers tell us?

SalesCostsProfit

Revenue vs Profit

Rising sales do not always mean rising profit. In this example, profit falls in 2025 and 2026 while revenue rises. Look for changes in costs and margins.

BorrowingEarnings

Understanding Debt

Increasing debt-to-equity can mean a greater reliance on borrowing. Review interest costs and whether earnings could cover them if business slows.

ProfitCash flowDividend

Dividend Changes

A dividend can change. Review it alongside profit and cash flow, and read why payments changed before drawing a conclusion.

Takeaway: numbers raise questions. They do not give a buy or sell answer.

YOUR TURN

Turn numbers into better questions.

Use the fictional report above. There are three questions, with an explanation after each answer.

123

For learning only. Financial indicators do not automatically determine whether a stock is a good investment.

QUESTION 01 OF 030 checked

Revenue has risen every year, but net profit has fallen for two years. What is the most useful next step?

Choose your answer