Client Name

Lucky Investments Limited

Faculty Advisor

Mr. Irfan Ahmed

SBS Thought Leadership Areas

Investment Decision Making

SBS Thought Leadership Area Justification

The project aligns most strongly with the SBS Thought Leadership Area of Investment Decision Making. The core purpose of the project was to conduct an equity valuation and strategic outlook for BF Biosciences Limited by analyzing its business fundamentals, financial performance, industry position, risks, and future prospects. The project converted raw financial, company, and market data into a structured investment view for Lucky Investments Limited.

This alignment is reflected in the project’s main deliverables, which included a pharmaceutical sector and company research report, a ten-year financial model, an initiating coverage report, and a dynamic valuation dashboard. These outputs supported investment decision-making by applying financial forecasting, discounted cash flow valuation, peer comparison, sensitivity analysis, and risk assessment to arrive at a clear investment recommendation.

The project contributes to the Investment Decision Making area by demonstrating how company-level analysis and sector-level research can be combined to assess whether a stock is fairly valued, undervalued, or overvalued. In the case of BF Biosciences Limited, the analysis resulted in a Buy recommendation based on estimated valuation upside, growth potential, capacity expansion, and the company’s strategic position within Pakistan’s pharmaceutical and biologics sector. The project therefore has practical implications for portfolio managers, research analysts, and investors seeking informed investment decisions in Pakistan’s capital market.

Aligned SDGs

GOAL 8: Decent Work and Economic Growth

Aligned SDGs Justification

The project aligns with SDG 8: Decent Work and Economic Growth because it focuses on investment analysis, business growth, capital market development, and the economic contribution of Pakistan’s pharmaceutical sector. Through the equity valuation of BF Biosciences Limited, the project assesses how a listed company creates financial value, expands production capacity, improves profitability, and contributes to long-term industrial and economic growth.

The project supports SDG 8 by helping investors make informed decisions based on financial performance, future prospects, risks, and valuation. The financial model, initiating coverage report, and valuation dashboard provide a structured basis for assessing whether investment in BFBIO can support productive capital allocation. Since the company operates in pharmaceutical manufacturing, its growth can also contribute to employment, local production, import substitution, and broader economic activity.

By evaluating BFBIO’s ability to generate sustainable earnings and shareholder value, the project connects directly with the SDG 8 focus on inclusive and sustainable economic growth, productive enterprise development, and stronger financial decision-making in the market.

NDA

No

Abstract

This project presents an institutional-grade equity valuation and strategic outlook for BF Biosciences Limited (BFBIO), a listed Pakistani manufacturer of biologic medicines. Conducted for Lucky Investments Limited, a Shariah-compliant asset management company, the project aimed to transform raw financial, company, and market data into a structured investment view.

The project produced four connected deliverables: a pharmaceutical sector and company research report, a ten-year financial model, an initiating coverage report with a formal recommendation, and an interactive valuation dashboard. The research combined bottom-up financial analysis with a structured review of the pharmaceutical industry and regulatory environment. The financial model used audited results, the IPO prospectus, corporate briefings, and Pakistan Stock Exchange disclosures to forecast free cash flow to the firm. These cash flows were discounted using a weighted average cost of capital estimated through the capital asset pricing model. The valuation was further tested through peer comparison and sensitivity analysis.

The analysis finds that BF Biosciences holds a defensible niche as one of Pakistan’s few domestic producers of complex biologic therapies. Its second manufacturing line has also expanded capacity significantly. The base-case discounted cash flow indicates a fair value of approximately PKR 148 per share against a market price near PKR 139, implying about 6% upside, while peer valuation suggests a value closer to PKR 157.

Based on these findings, the project initiates coverage on BFBIO with a Buy recommendation. The main implication for Lucky Investments is that BFBIO offers modest undervaluation, growth exposure, and a clear case for scenario-based monitoring through the financial model and dashboard.

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

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