Report
Team AKD Research
EUR 9.60 For Business Accounts Only

ASTL_1QFY22 Result Review (above expectation), (AKD, Off the Analyst's Desk, Oct 26, 2021)

AKD, Off the Analyst's Desk

ASTL: 1QFY22 Result Review - (above expectation)

  • Amreli Steels Limited (ASTL) announced result for 1QFY22 where company posted impressive NPAT of PkR702mn (EPS: PkR2.36) vs NPAT of PkR111mn (EPS: PkR0.37), increasing by 534%YoY and 58.4%QoQ.
  • The topline registered a growth of 50%YoY to PkR11.8bn mainly due to increase in gross margin to 14.3% against 10.8% witnessed in 4QFY21 owing to increase of 15.4%QoQ in local rebar prices and a decline of 3%QoQ in avg. scrap prices.
  • Finance cost reduced by 15%YoY for 1QFY22 and expected to further reduce as a result of the company paying off its short term loans.
  • We await clarity from management regarding the deviation from our result where AKD Securities Ltd. will be hosting ASTL’s corporate briefing for 1QFY22 results today (Link to register: .
  • The company currently trades at FY22F P/E of 6.40x while 3-yr PEG stands at 0.34x with our TP of PkR57/sh provides a capital upside of 55% from last close – Buy.

AKD Research

Underlying
Amreli Steels

Amreli Steels Limited is a Pakistan-based steel manufacturing company. The Company is engaged in the manufacture and sale of steel bars and billets. The Company offers a range of steel bars for all construction needs.

Provider
AKD Securities Limited
AKD Securities Limited

AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.

AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.

Analysts
Team AKD Research

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