Report
EUR 8.70 For Business Accounts Only

Amreli Steels Limited : Estimate tweaked on SITE expansion; Buy maintained

  • Post announcement of 2QFY18 results and plans regarding BMR at SITE plant we slightly revise down our earnings estimates by 5% for FY21-22 on the back of higher finance costs.
  • We maintain our Buy stance on ASTL with DCF-based TP of PKR117.59/sh. Our estimate does not incorporate recently announced capex of PKR1.04bn to be incurred on the towering business through JV arrangement with a Chinese company.
  • We view the expected commissioning of new rebar plant as a key event which may help unlock ASTL’s price performance. The project is expected to achieve commercial operations by end-Mar’18.
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
BMA Capital Management Limited
BMA Capital Management Limited

​BMA is amongst the leading financial groups in Pakistan. BMA Capital’s core areas of business include Capital Markets, Corporate Finance & Advisory, Asset Management, and Financial Products Distribution. BMA Capital is the leader in privatisation advisory in Pakistan, having successfully advised on over 50% of all privatisations in Pakistan, by value, in transactions valued in excess of US$4 billion. Recent transactions include joint lead managing the $813 million GDR Offering of 10% of OGDCL on the London Stock Exchange in 2006-07, and advising Etisalat on their successful acquisition of a 26% strategic stake in Pakistan Telecommunications Company Limited (PTCL) for US$2.6 billion, the largest M&A transaction and foreign direct investment in Pakistan’s history. The firm is among the top brokers in the Pakistan equity and treasury markets, and is among a handful of firms that comprehensively cover all segments of the capital markets. This is supported by a very strong and independent research capability, which is quoted regularly in both local and international media. BMA Capital’s retail brokerage brand, BMA Trade, has launched a nationwide network of branches as well as a comprehensive online trading platform, enabling investors across Pakistan to take part in the capital markets.

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