Pak Elektron Limited (PAEL): Management Expects Volume Led Earning Growth - By AKD Research

May 29 2025


AKD Securities


  • Pak Electron Ltd. (PAEL) conducted its corporate briefing on 27th May to discuss CY25 & 1QCY25 financial results and future outlook. Just to recall, PAEL posted EPS of Rs2.8 during CY24 versus Rs1.5 during the same period last year (up 79%YoY). This increase in earnings is mainly due to elevated product prices and lower effective taxation during the period.
  • Company has two major businesses including Home Appliance and Power Division. Due to sharp recovery in demand following declining interest rates and improving disposable income, company’s Home appliance business contributed earnings of Rs1.9 per share (67% of total EPS of 2.8) while rest 33% is contributed by Power Division.
  • Moreover, PAEL is currently trading at CY25 PE of 7.7x versus last 3-year average PE of 9.6x.
Pak Elektron Limited (PAEL): Management Expects Volume Led Earning Growth - By AKD Research

May 29 2025


AKD Securities


  • Pak Electron Ltd. (PAEL) conducted its corporate briefing on 27th May to discuss CY25 & 1QCY25 financial results and future outlook. Just to recall, PAEL posted EPS of Rs2.8 during CY24 versus Rs1.5 during the same period last year (up 79%YoY). This increase in earnings is mainly due to elevated product prices and lower effective taxation during the period.
  • Company has two major businesses including Home Appliance and Power Division. Due to sharp recovery in demand following declining interest rates and improving disposable income, company’s Home appliance business contributed earnings of Rs1.9 per share (67% of total EPS of 2.8) while rest 33% is contributed by Power Division.
  • Moreover, PAEL is currently trading at CY25 PE of 7.7x versus last 3-year average PE of 9.6x.
Pak Elektron Limited (PAEL): Volumetric growth to keep prospects attractive - By JS Research

May 29 2025


JS Global Capital


  • Pak Elektron Limited (PAEL) held its analyst briefing recently to discuss financial performance and outlook of the company. The company targets a gross revenue of around Rs95bn during CY25, implying anticipated growth of 36% YoY led by volumetric growth expected across major segments.
  • PAEL has been establishing strategic partnerships with Electrolux and Panasonic for the local manufacturing of their products. To highlight, these partnerships are likely to bode well for the company by enabling it to offer higher priced margin accretive products compared to the company’s own products.
  • The company is also well positioned in terms of exports, with a target of US$50mn during CY25 including US$44mn orders already secured CYTD. The management also highlighted the expected hikes in tariff by US is likely to be an opportunity for the company as it has the lowest lead time compared to competitors, while the hike in tariffs is likely to be passed on.
Pak Elektron Limited (PAEL): Exciting prospects ahead Initiating Coverage with a ‘BUY’ - By Taurus Research

May 16 2025


Taurus Securities


  • We initiate coverage on Pak Elektron Limited (PAEL) with a ‘BUY’ rating based on a Dec’25 target price of PKR 65/sh., reflecting an upside of 41% over the LDCP. PAEL is currently trading at a forward P/E of 9.5x, a 36% discount to its peers.
  • Our investment thesis is primarily based upon: i) Volumetric growth and uptick in utilization levels for both Power & Home Appliances divisions on the back of recovering demand; ii) Commencement of Transformer exports to the US along with strategic partnerships with Electrolux and Panasonic; iii) Relatively high & stable gross margins; iv) Strong presence in both Power and Home Appliances; v) Benefits from lower inflation & interest rates and a stable outlook for the Rupee; and vi) Sufficient capacity to deliver on new contracts, including exports.
  • Moreover, we believe PAEL could also be a major beneficiary of Government sponsored megaprojects and initiatives, broadening demand for its Power division. Finally, PAEL also enjoys unrivaled international technical collaborations and strategic partnerships which support innovation, helping it target new markets and segments both in Power and Home Appliances.
Pak Elektron Limited (PAEL): Tariff Hike on China to Unlock US Transformer Market - By Sherman Research

Apr 11 2025


Sherman Securities


  • While accessing major implications of US tariffs on Pakistani manufacturers, we found out that PAEL seems to be one of the major beneficiaries of US-China Tariff war. Despite 29% Tariff imposition on Pakistani goods to US (currently paused for 90 days), higher tariff on Chinese goods (145%) may create additional demand for PAEL’s transformers as the company has already started exporting transformers to US from March 2025.
  • Our back of the envelope working suggest that for every 10% utilization of idle capacity, transformer business to generate additional annual earnings of Rs0.6/share (11% of CY25 earnings), provided we do not see dumping of goods by China.
  • PAEL is currently trading at CY25 PE of 7.8x versus last 3-year average PE of 9.6x. We have not yet incorporated the impact of US trade war with China on PAEL’s earnings.
Pak Elektron Limited (PAEL): Tariff Hike on China to Unlock US Transformer Market - By Sherman Research

Apr 11 2025


Sherman Securities


  • While accessing major implications of US tariffs on Pakistani manufacturers, we found out that PAEL seems to be one of the major beneficiaries of US-China Tariff war. Despite 29% Tariff imposition on Pakistani goods to US (currently paused for 90 days), higher tariff on Chinese goods (145%) may create additional demand for PAEL’s transformers as the company has already started exporting transformers to US from March 2025.
  • Our back of the envelope working suggest that for every 10% utilization of idle capacity, transformer business to generate additional annual earnings of Rs0.6/share (11% of CY25 earnings), provided we do not see dumping of goods by China.
  • PAEL is currently trading at CY25 PE of 7.8x versus last 3-year average PE of 9.6x. We have not yet incorporated the impact of US trade war with China on PAEL’s earnings.
Pak Elektron Limited (PAEL): Declining Interest Rates & Exports to Drive Profitability – By Sherman Research

Jan 9 2025


Sherman Securities


  • We recommend ‘BUY’ stance on Pak Electron Limited (PAEL) with TP of ~Rs55 based on blended valuation by using DCF & PE valuation techniques. To note, we have also mentioned PAEL in our Market strategy (published on 20th Dec’24) as our Alpha stock for 2025, since then, the stock has generated return of ~10%. PAEL is the market leader in Pakistan’s electric capital goods market owing to its cost efficiencies with market share of around 25%. Moreover, company is ranked 3 rd in Pakistan’s local home appliance Industry as company enjoys market share of 20% in Refrigerator & Freezer market while 33% in Water Dispenser and 8% in Air Conditioner segment.
  • Pakistan’s home appliances market roughly stands at around Rs400bn which is expected to grow by an average 15% during next couple of years after falling to lowest level during 2022-2023. Interestingly, following import restrictions and PKR devaluation, foreign appliances are losing their way in domestic home appliance market and thus penetration of local players is improving. We expect market share of local players will improve from 50% to 70% during next 3 years. PAEL’s Home appliance segment to post revenue CAGR of 35% during CY24-CY26 while earnings from this segment to register CAGR of 63%.
Pakistan Power: Base tariff cut and circular debt overhaul to reshape energy sector outlook - By AKD Research

Jul 7 2025


AKD Securities


  • The national base tariff is determined at PkR34.0/kwh for FY26, down by 4%YoY compared to PkR35.5/kwh in FY25.
  • GoP has accelerated its power sector reform agenda, with the PkR1.25tn commercial bank borrowing facility to reduce the mounting circular
  • Continued resolution of the circular debt would be beneficial for companies under our coverage space, namely: OGDC (Dec’25 TP: PkR371/sh), PPL (Dec’25 TP: PkR281/sh) and PSO (Dec’25 TP: PkR729/sh).
Autos: Marking FY25 as a year of recovery - By JS Research

Jul 7 2025


JS Global Capital


  • We preview automobile sales volumes for Jun-2025, expecting the three major players including Indus Motors Company Ltd (INDU), Honda Atlas Cars Ltd (HCAR), and Pak Suzuki Motor Company Ltd to post combined growth of 33%/9% YoY/MoM, reaching ~14.5k units – highest since Dec-2022.
  • All three companies are projected to post strong YoY volume growth, with HCAR leading peers with 65% YoY growth in Jun2025, followed by PSMC (+31% YoY), and INDU (+25% YoY), helped by pre-budget buying ahead of anticipated negative budgetary measures. Meanwhile, Sazgar Engineering Works Ltd (SAZEW) volumes also rose 55% YoY in Jun-2025.
  • For FY25 cumulatively, the auto sector witnessed a strong recovery, with volumes expected to grow by 37% to ~121k units, supported by improving macroeconomic stability and a rebound in consumer confidence amid stable car prices.
Technical Outlook: KSE-100 setting a record - By JS Research

Jul 7 2025


JS Global Capital


  • Bullish momentum continued for the KSE-100 index, which gained 1,262 points to close at 131,949. Trading volumes stood at 733mn shares, compared to 900mn shares previously. The index is likely to retest Friday’s high of 132,130; a break above this level could target 133,412, with potential to rise further toward 135,232. On the downside, support is seen in the 130,710-131,600 range. The RSI and MACD continue to rise, reinforcing the positive outlook. We advise investors to ‘Buy on dips,’ with risk defined below 130,716. Immediate support and resistance are placed at 131,067 and 132,480, respectively.
Morning News: Pakistan, US reach accord on trade and tariffs - By HMFS Research

Jul 7 2025


HMFS Research


  • With less than a week to go before the July 9 deadline, Pakistan and the United States have concluded a critical round of trade negotiations. While both sides have reached an understanding, a formal announcement is expected only after the US concludes similar ongoing negotiations with other trade partners. The tariff relief, temporarily paused earlier this year, was at risk of expiring if no progress had been made by the July 9 deadline. The agreement, when signed, could lead to increased Pakistani imports of US goods — notably crude oil — and potential American investment in Pakistan’s mining, energy, and infrastructure sectors.
  • The U.S. dollar hovered near its lowest since 2021 against the euro and the weakest since 2015 versus the Swiss franc on Monday, with traders alert for any trade-related headlines in the countdown to President Donald Trump’s tariff deadline. The dollar index , which measures the currency against those three rivals and three more major counterparts, was flat at 96.967, hovering above Tuesday’s nearly 3-1/2-year trough of 96.373.
  • US President Donald Trump said on Friday that he had signed 12 trade letters to be sent out next week ahead of an impending deadline for his tariffs to take effect. “I signed some letters and they’ll go out on Monday, probably 12,” Trump told reporters aboard Air Force One, adding that the countries to which the letters would be sent will be announced on the same day. His comments come days before steeper duties — which the president said on Thursday would range between 10 and 70 per cent — are set to take effect on dozens of economies, from Taiwan to the European Union.
Morning News: Pakistan, US reach accord on trade and tariffs - By Vector Research

Jul 7 2025


Vector Securities


  • With less than a week to go before the July 9 deadline, Pakistan and the United States have concluded a critical round of trade negotiations, reaching an understanding on a deal that could shape the future of the country’s key export sectors. The delegation arrived in Washington on Monday with the aim of finalising a long-term reciprocal tariff agreement that would prevent the re-imposition of a 29 per cent tariff on Pakistani exports — primarily textiles and agricultural products. The tariff relief, temporarily paused earlier this year, was at risk of expiring if no progress had been made by the July 9 deadline.
  • Pakistan and Azerbaijan in a major development Friday signed a partnership agreement. The agreement for investment of a total of $2 billion by Azerbaijan in the economic sector of Pakistan.
  • Foreign exchange companies contributed around $450 million to remittance inflows during June, taking their total contribution to approximately $5 billion in FY25, according to the Exchange Companies Association of Pakistan (ECAP). “We sold about $450m to banks in June, highlighting our growing role in supporting the country’s exchange rate stability,” said Zafar Paracha, Secretary General of ECAP.
Morning News: Azerbaijan to invest $2bn in economic sector WE Research

Jul 7 2025



  • Pakistan and Azerbaijan have signed a significant $2 billion investment agreement, marking a new milestone in bilateral economic relations. The deal, signed in the presence of Prime Minister Shehbaz Sharif, Deputy Prime Minister Ishaq Dar, and Azerbaijani Economy Minister Mikayil Jabbarov, reflects growing investor confidence in Pakistan. It follows a cordial meeting between Prime Minister Sharif and Azerbaijani President Ilham Aliyev in Khankandi, with a more detailed agreement to be finalized during the Azerbaijani President’s upcoming visit to Pakistan. Both countries committed to further enhancing cooperation across various sectors, including trade, investment, and climate issues, as emphasized by Prime Minister Sharif during his remarks in Shusha.
  • With less than a week before the July 9 deadline, Pakistan and the United States have reached a preliminary understanding on a trade agreement aimed at securing Pakistan’s key export sectors, particularly textiles and agriculture, from the re-imposition of a 29% tariff. Led by Commerce Secretary Jawad Paal, the Pakistani delegation concluded four days of negotiations in Washington, with a formal announcement expected after the US finalizes talks with other trade partners. The proposed deal includes reciprocal tariff arrangements, increased Pakistani imports of US goods such as crude oil, and potential American investment in Pakistan’s mining, energy, and infrastructure sectors—including projects like Reko Diq. Officials remain optimistic that the agreement will preserve Pakistan’s access to the US market and revitalize economic ties strained since the Trump-era tariffs.
  • Oil prices dropped over 1% after OPEC+ surprised markets by announcing a larger-than-expected production increase of 548,000 barrels per day (bpd) for August, raising fears of oversupply. Brent crude fell to $67.50 per barrel, while U.S. West Texas Intermediate dropped to $65.68. The hike, up from prior monthly increases of 411,000bpd, reflects a more aggressive push for market share, with Saudi Arabia driving much of the actual output gains. OPEC+ cited strong global demand and low inventories as justification. Goldman Sachs expects a final 550,000bpd increase to be announced for September at the group’s August 3 meeting. Meanwhile, Saudi Arabia raised prices for its flagship Arab Light crude in a show of confidence in demand. In a related development, U.S. President Trump indicated higher tariffs will be announced by July 9, with implementation set for August 1.
Market Wrap: Banking on Bulls: KSE-100 Hits a New Milestone - By HMFS Research

Jul 4 2025


HMFS Research


  • The Pakistan Stock Exchange (PSX) sustained its upward trajectory in today’s session, with the benchmark KSE-100 Index surging to a fresh intra-day high of 132,130 before closing at 131,949, up by a robust 1,262 points (+0.97%). The rally was supported by sustained investor interest—particularly in the banking sector—as participants continued to rotate into fundamentally sound, undervalued plays amid a supportive macroeconomic backdrop. Trading activity remained strong, with the All-Share Index posting a healthy turnover of 731mn shares, while KSE-100 volumes came in at 199mn shares, indicating broad-based participation. Top volume leaders included, WTL (58mn), BML (36mn), and TREET (30mn). The banking sector emerged as the primary driver of index gains, supported by attractive dividend yields, and compelling P/B valuations. The recent softening in Pakistan’s sovereign credit default swap (CDS) spreads has further improved investor sentiment by lowering perceived external risk, catalyzing flows into equities. While the momentum remains firmly intact, the market’s proximity to psychological resistance levels suggests room for near-term consolidation, especially as investors may opt to lock in recent gains. However, the medium-term narrative remains constructive, underpinned by prospects of continued IMF engagement, fiscal reforms, and easing external account pressures. We continue to advise investors to remain selective and focus on sectors with resilient fundamentals and earnings visibility. In the current phase of the cycle, valuation discipline, liquidity considerations, and macro-driven event positioning will remain critical in navigating market dynamics.
Market Wrap: Highlights of the day - JS Research

Jul 4 2025


JS Global Capital


  • The KSE-100 Index closed the session on a strong note, gaining 1,262 points to settle at 131,949. Broad-based buying was seen across key sectors, with Autos, banks, and Power leading the charge. Investor sentiment remained upbeat, supported by improved macros and anticipation of further monetary easing. Looking forward, we have a favorable view on the market in the near term, backed by favorable liquidity conditions, positive policy cues, and foreign interest returning to key sectors. However, intermittent consolidation cannot be ruled out as the index approaches resistance levels.
Fertilizers: Sales to recover in June-2025; albeit inventory level remains high - By JS Research

Jul 4 2025


JS Global Capital


  • As per provisional figures, Urea off-take during Jun-2025 is expected to clock in at 580k tons, arriving at a growth of 20% YoY/ 39% MoM. Cumulatively, Urea off-take is likely to post a negative growth of 23% YoY during 1HCY25. On the other hand, DAP off-take is likely to fall 15% YoY during the month.
  • Company-wise, Fauji Fertilizer Company (FFC) is expected to post Urea off-take of 269k tons in Jun-2025, up 4% YoY. This includes 51k tons of granular Urea. Engro Fertilizers (EFERT) is likely to post growth 32% YoY, arriving at 205k tons. In terms of market share, EFERT Urea share improved by 3ppts YoY to 35%, while FFC’s share dipped 8ppts YoY during the month.
  • Urea inventory is expected to remain elevated at around 1.3mn tons by the end of 1HCY25. Assuming capacity utilization remains stable at current levels, allowance of export can be a key trigger in our view, helping to mitigate inventory buildup despite the anticipated increase in local sales during 2HCY25.
Technical Outlook: KSE-100; Upside to continue - By JS Research

Jul 4 2025


JS Global Capital


  • The KSE-100 Index witnessed a volatile session to close at 130,687, up 343 points DoD. Volumes stood at 900mn shares compared to 1,026mn shares traded in the last session. The index is expected to revisit yesterday’s high of 131,325 with a break above targeting 132,134, which can extend to 133,412. However, any downside will find support in the range of 129,050-129,870 levels. The RSI and the MACD are heading up, supporting a positive outlook. We advise investors to 'Buy on dips', keeping stoploss below 128,616. The support and resistance levels are placed at 129,867 and 131,415, respectively.
Pakistan Power: Base tariff cut and circular debt overhaul to reshape energy sector outlook - By AKD Research

Jul 7 2025


AKD Securities


  • The national base tariff is determined at PkR34.0/kwh for FY26, down by 4%YoY compared to PkR35.5/kwh in FY25.
  • GoP has accelerated its power sector reform agenda, with the PkR1.25tn commercial bank borrowing facility to reduce the mounting circular
  • Continued resolution of the circular debt would be beneficial for companies under our coverage space, namely: OGDC (Dec’25 TP: PkR371/sh), PPL (Dec’25 TP: PkR281/sh) and PSO (Dec’25 TP: PkR729/sh).
Economy: Tariff rationalization to bring in competitiveness - By AKD Research

Jul 3 2025


AKD Securities


  • Govt. has issued SROs pertaining to Additional Customs Duty (ACD) and Regulatory Duties (RDs), in line with National Tariff Policy 2025–30.
  • ACD has been revised to 0%, 2%, 4%, and 6% (previously 2%, 4%, 6%, and 7%), while RD has been removed on multiple PCT codes, with the maximum RD rate reduced from 90% to 50%.
  • Sector-wise, margins for auto assemblers are likely to normalize from recent highs, while chemical, steel, and textile spinning/weaving sectors would face margin pressures.
Pakistan Cement: Cement demand to rise on PSDP push and construction revival in FY26 - By AKD Research

Jul 3 2025


AKD Securities


  • Cement dispatches reached 46.22mn tons in FY25, an increase of 2%YoY, driven by higher export volumes, while domestic sales fell to eight-year low.
  • Industry-wide capacity utilization increased to 54.8% during FY25 (up 0.2ppt YoY).
  • We expect domestic offtakes to grow by 6%YoY in FY26, amid easing interest rates, pick-up in government spending, and sustained demand from the real estate sector.
Oil Marketing Companies: OMC offtakes conclude FY25 on strong footing - By AKD Research

Jul 2 2025


AKD Securities


  • OMC volumetric sales for FY25 reached 16.3mn tons, higher by 7%YoY. Specifically, MS/HSD offtakes stood at 7.6mn/6.9mn tons for the full year, up 6%/10%YoY.
  • We have a ‘BUY’ call for PSO and APL with Dec’25 TP of PkR729/850 per share, with DY of 5.1%/6.1% for FY26E
  • Our reasons for liking include anticipated revision in OMC margins during FY26 alongside volumetric recovery, while resolution of circular debt is to favorably impact the state-owned OMC i.e. PSO.
Gul Ahmed Textiles Mills Ltd. (GATM): 9MFY25 Analyst Briefing Takeaways - By AKD Research

Jul 1 2025


AKD Securities


  • Gul Ahmed Textiles Mills Ltd. (GATM) held its analyst briefing yesterday to discuss the 9MFY25 financial results and future outlook of the company:
  • To recall, company posted sales of PkR119.1bn in 9MFY25 (up by 13.3%YoY) due to higher export sales, while earnings declined to PkR2.1bn (down 7.5%YoY), due to cost pressures.
  • Gross margins contracted to 10.9% during the period compared to 11.5% in 9MFY24. The said decline is mainly due to higher energy costs.
Mari Energies Ltd (MARI): 9MFY25 Analyst Briefing Takeaways - By AKD Research

Jul 1 2025


AKD Securities


  • Mari Energies Ltd (MARI) held its analyst briefing yesterday to discuss 9MFY25 financial results and future outlook
  • The company reported net sales of PkR132.3bn during 9MFY25, down 7%YoY, primarily due to a combination of lower production of 29.3mn boe (down 2%YoY) and softening wellhead prices during the period.
  • Net profit declined by 10%YoY to PkR46.3bn (EPS: PkR38.6), with the contraction attributed to the impact of additional royalty applied to Mari D&P lease during the year.
Economy: KSE-100 outperforms all asset classes for second consecutive year - By AKD Research

Jul 1 2025


AKD Securities


  • Aggressive monetary easing, supported by tight fiscal policy and a strong external account, contributed to a 60.1% return for the KSE-100 in FY25, as it emerged as the bestperforming asset class for the second consecutive year.
  • Banks contributed the most to KSE-100 with 15,160 points during FY25, followed by Fertilizer with 8,292 points, E&Ps with 6,845 points, and Cement with 5,596 points.
  • Mutual Funds turned net buyers in FY25 after three consecutive years of selling, absorbed most of the selling by Foreigners.
Al-Ghazi Tractors Ltd. (AGTL): CY24 and 1QCY25 Analyst Briefing Takeaways - By AKD Research

Jun 26 2025


AKD Securities


  • Al-Ghazi Tractors Ltd. (AGTL) held its analyst briefing today to discuss CY24/1QCY25 results and future outlook of the company. Following are the key highlights:
  • Company posted earnings of PkR3.5bn (EPS: PkR61.1) in CY24, compared to PkR2.6bn (EPS: PkR45.1) in CY23. The said increase was primarily attributable to improved gross margins to 24% during the period compared to 19% during SPLY.
  • Moreover, operating expenses saw a 50%YoY increase in CY24 following the company's transition from its old ERP system to SAP S/4HANA, as well due to free deliveries for tractors sold in Punjab’s Green Tractor Scheme.
Economy: Inflation to moderate further in FY26 - By AKD Research

Jun 26 2025


AKD Securities


  • Continued tight monetary and fiscal policies amid stable currency are expected to moderate inflation further in FY26.
  • We expect inflation to remain at 4.4% in FY26, broadly in line with estimation for FY25, driven by a modest increase in the heavily weighted Food and Housing indices amid subdued Int’l commodity prices.
  • Rupee is expected to remain stable due to improved external account position driven by elevated remittances and rising exports aided by structural reforms.
Fertilizer: Offtakes show first recovery in CY25; but high inventory and agri stress still weigh - By AKD Research

Jun 17 2025


AKD Securities


  • Fertilizer offtakes recorded the first improvement during CY25, driven by availability of interest-free loans under the Punjab Kisan Card scheme and preemptive buying amid rumors of price increase post budget.
  • Urea sales improved by 5%YoY to 418k tons, while, DAP, CAN, & NP sales increased by 2.4x/2.5x/60% YoY, respectively.
  • EFERT and FATIMA’s urea sales increased by 86%/3.7x YoY, driven by discount offering and improved product availability. In contrast, FFC’s urea offtakes declined by 28%YoY on high base
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