Financial results of ASTL & FFC has been announced today with the below details.
Image from pixabay.com
Amreli Steels Limited (ASTL) – Earnings to remain solid in 1QFY22: ASTL is slated to announce its 1QFY22 result (26th Oct'21), where we expect the company to record NPAT of PkR467mn (EPS: PkR1.57) vs NPAT of PkR111mn (EPS: PkR0.37) in 1QFY21. The expected earnings primarily emanate from: i) 61/6%YoY/QoQ growth in the topline largely on account of higher rebar prices (+15.4%QoQ), and ii) 21%YoY lower finance cost. Gross margin is likely to remain flat compared to YoY and QoQ basis (GM: 10.9% in 1QFY22E vs. 10.9% in 1QFY21 and 10.77% in 4QFY21), where input cost pressures coupled with higher freight cost, electricity rate hikes and PkR depreciation are key factors. Moreover, earnings are likely to see an improvement of 5.4%QoQ. The company currently trades at FY22F P/E of 6.08x while 3-yr PEG stands at 0.32x with our TP of PkR57/sh provides a capital upside of 56% from last close – Buy.
Image from pixabay.com
Fauji Fertilizer Company (FFC) – Earnings to rise by 47%YoY in 3QCY21: Fauji Fertilizer Company Ltd (FFC) is expected to announce NPAT of PkR6.79bn (EPS: PkR5.34) in 3QCY21, swelling by 87%QoQ/47%YoY. This will take 9MCY21 NPAT to PkR16.2bn (EPS: PkR12.75), up 18%YoY. The increase in earnings is majorly driven by i) higher expected offtake in Urea (+17%QoQ/+15%YoY) and ii) higher gross margin (GMs: 39% in 3QCY21 vs 34% in 3QCY20) owing to better Urea pricing in 3QCY21. The current Urea price stands at PkR1,725/bag (cumulative hike of PkR125/bag CYTD). In addition to this, the company is expected to announce third interim cash dividend of PkR4.0/sh taking cumulative payout to PkR10.1/sh for 9MCY21 owing to healthy EBITDA margin, enabling the company to maintain its historical payout ratio of 70%+, despite upcoming GIDC payments as per Supreme Court’s decision. Our TP of PkR145/sh implies an upside of 45% from last close – Buy!
Happy investing!
Disclaimer: I am not a financial advisor. Please do your owner working before any investments. This post is for the purpose of information only.
Thanks & Regards!
Posted Using LeoFinance Beta
Yay! 🤗
Your content has been boosted with Ecency Points, by @leopard0505.
Use Ecency daily to boost your growth on platform!
Support Ecency
Vote for Proposal
Delegate HP and earn more
Source of plagiarism
Plagiarism is the copying & pasting of others' work without giving credit to the original author or artist. Plagiarized posts are considered fraud and violate the intellectual property rights of the original creator.
Guide: Why and How People Abuse and Plagiarise
Fraud is discouraged by the community and may result in the account being Blacklisted.
If you believe this comment is in error, please contact us in #appeals in Discord.