Mughal_Copper at 10 year high – MUGHAL to benefit , (AKD, Off the Analyst's Desk, April 30, 2021)
Copper at 10 year high –
MUGHAL to benefit
International copper prices have touched a 10‐year high of USD9990/ton on
the back of global demand recovery, worsened by supply side disruptions
resulting from ongoing trade spat between China & Australia, with mines in
Peru and Chile also facing issues.
The surging prices spell good news for MUGHAL after the company ventured
into manufacturing of copper ingots from 1QFY21. In our base case, we have
assumed sales volume of 1500/5000 tons of copper ingots for 4QFY21/FY22
and selling prices of USD8500/8190, contributing PkR1.63/3.76 to EPS for
4QFY21/FY22. (Overall, 4QFY21/FY22 tentative earnings are expected to stand
at PkR3.43/14.21)
However, if we incorporate the current multiyear high prices of
USD10,000/ton, EPS contribution from sales of copper ingots increases to
PkR1.98/4.8 for 4QFY21/FY22 (additional impact PkR0.34/1.04/sh for
4QFY21/FY22). To note, MUGHAL sold 2500 tons of copper ingots during
1HFY21.
AKD Securities Limited
Mughal Iron & Steel Industries Ltd. Mughal Iron & Steel Industries Limited is engaged in manufacturing and trading of mild steel products. The Company is engaged in producing steel in the long-rolled steel products, which has a capacity of 688,000 metric/tons of re-rolled steel per annum. The Company is engaged in multidimensional activities from making billets of mild steel, spring steel, deformed bar, re-bar, cold twisted rebar and a range of sections, such as I-beams, L-sections, C-section, H-beams and T-bar. The Company offers its products under various categories, including Smelting, such as Ferro Silicomanganese, Ferro Chrome and Ferro Silicon; Billet, such as Mild Carbon Billets, Spring Steels, Austentic Stainless Steel, Ferrite Stainless steels and Alloys Steels; Bars, including Deformed Bars, Re-inforcement Bars and Thermax Bars; Beams, including I Beams (Girders), Angle Section (L Section), T Bar (T section) and C Channel, and Grade and Specifications, including ASTM A 615 G-40 and ASTM A 321.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.