Report
EUR 9.28 For Business Accounts Only

INDU: Fundamentals warrant upgrade

​We upgrade our earnings for INDU across the valuation horizon citing: 1) soft PkR/JpY (down 5.1% CYTD) and 2) higher than expected order books for recently launched variants. Higher than expected growth in trading margins and a sturdy order book confirm our bullish thesis, where we raise our FY17/18/19F NPAT by 21/13/14% from our previous estimates. Moreover, the expected launch of a facelift for the Corolla is expected to abate a major decline (assumed at 5% for FY18F) in Corolla sales, which we have now assumed at 2% (Corolla sales forecasted at 56K for FY18F). Resultantly, we raise our FCFE based TP to PkR2,214/sh (increase of 15% over previous TP), highlighting the continuation of ~5% D/Y across FY17-19F as an additional catalyst for our ACCUMULATE stance on the stock.

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.

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