Panther_Robust consumer durables exposure on offer, (AKD Daily, Jan 27, 2021)
AKD Daily
Panther: Robust consumer durables exposure on offer
- With its book building commencing from today, Panther Tyres is the latest addition to the consumer durable space, where the company shows a strong track-record of benefitting from import substitution in key segments (Tractors, two & three wheelers) coupled with a stable margin profile.
- While discussing key facets of the domestic tyre manufacturing industry, we highlight the increasing role of import duties, improved documentation and heightened competitive environment pushing domestic products, replacing imported tyres
- Despite the depreciative impact of smuggled products, Panther has contended with external vulnerabilities (tied to profitability as ~60% of raw materials are imported), while on its margin profile and debt load, the firm presents a stable backdrop supported by superior sales growth
- Finding significant catalysts to meet long term demand, conducive factors driving sustainable profitability and undemanding valuations (on comparison with listed peers) we recommend a subscribe stance, up to price of PkR55/sh, with the firm likely to be a contender for investors seeking to increase consumer durables exposure in their portfolios
AKD Research
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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