Pakistan Long Steel Sector-“Sharp Recovery Underway”

-We initiate our coverage on Pakistan long steel sector with an Outperform rating and Buy recommendation on Amreli Steel Limited (ASTL) (PT: PkR58, 41% upside) and Mughal Steel Limited (MUGHAL)(PT: PkR64, 25% upside). In a bid to stimulate the economy, Government of Pakistan announced construction package, providing incentives for investments into the industry, including an… Continue reading Pakistan Long Steel Sector-“Sharp Recovery Underway”

MUGHAL 3QFY20 Result – EPS at PkR 0.13/sh-undershoots market consensus

-Mughal Iron & Steel Ltd (MUGHAL) announced its 3QFY20 results earlier today, posting Net Profit after Tax (NPAT) of PkR33mn (EPS of PkR0.13/sh), down 91%Y/Y and 67%Q/Q. The result was below market consensus of PkR0.79/sh. We expect the stock to remain under pressure on the back of subdued earnings driven by higher finance cost. For… Continue reading MUGHAL 3QFY20 Result – EPS at PkR 0.13/sh-undershoots market consensus

Amreli Steel Limited (ASTL)– Deteriorating GP Margins and higher other charges magnified losses; LPS at PkR 1.26/sh

-Amreli Steel Ltd (ASTL) announced its 3QFY20 result today posting Net Loss after Tax of PkR 379mn (LPS of PkR 1.26/sh) compared to net loss of PkR292mn (LPS of PkR 0.99/sh) reported in 3QFY19. The result was below market consensus of LPS of PkR 0.48/sh. Losses were magnified due to shrinking GP margins higher selling… Continue reading Amreli Steel Limited (ASTL)– Deteriorating GP Margins and higher other charges magnified losses; LPS at PkR 1.26/sh