The company will add 4 new subsidiaries and land spanning over 3 acres.
Company earnings will increase to PKR 20/sh from PKR 8/sh.
We expect it to have the potential to reach PKR 300/sh at a P/E of 15x, although the pharmaceutical industry, on average, trades at 20x.
Product Launch
- Launched ‘Prema Natural Spring Water’ to enter the premium water segment.
Financial Performance - 9MFY26
- EPS: PKR 1.87, up 19% YoY vs PKR 1.57
- EBIT: PKR 6.9bn, up 21% YoY vs PKR 5.7bn
- Sales: PKR 5.1bn, up 24.4% YoY vs PKR 4.1bn
Valuation Metrics
- Forward P/E: 11.3x (food sector multiple)
We assume biological assets of 3000 cows producing milk.
Urea offtake up 85% YoY to 463k tons in April 2026 – the highest level recorded in 15 years.
Cumulative urea sales (4MCY26) up 11% YoY to 1.5 million tons.
Growth was driven by early crop sowing, improved farm incomes, and pre-buying amid rising global prices.
Market Leaders:
Fauji Fertilizer Company (FFC) and Fatima Fertilizer led the market.
Both doubled their urea sales.
Market shares reached 52% (FFC) and 22% (Fatima).
Engro Fertilizers underperformed, with market share declining to 23% despite higher volumes.
Other Fertilizer Segments:
DAP sales declined 11% YoY due to higher prices and prior stockpiling.
CAN and NPK segments recorded strong growth.
Inventory & Prices:
Inventory levels remain elevated, particularly at Engro, but are expected to ease during the Kharif season.
Urea prices increased by Rs. 100–150 per bag, with further increases likely due to strong demand and tight supply.
Pakistan Telecommunications Company (PTC) is likely to benefit if the government goes ahead with the proposed tax relief for FY27, but the benefit depends on how much of the relief actually applies to the PTC business model.
The government is considering major tax relief for the telecom/broadband sector in the FY26-27 budget, as per the media outlets.
1. Cut the fiber optic import duty from ~60% to ~5%
2. Reduce taxes on internet services - currently ~19.5% provincial tax + 12.5% federal withholding tax
We believe the goal is to speed up Fiber-to-the-Site expansion and get Pakistan ready for 5G.
Why does this matter to PTC
1. Cost of network expansion drops
PTC is the largest fixed-line and broadband provider, and it’s rolling out fiber under the “PTCL Flash Fiber” brand.
Slashing the fiber optic duty from 60% to 5% directly cuts capex for fiber rollout. That makes expansion into new cities and underserved areas more financially viable.
2. More affordable broadband = more subscribers
If taxes on internet services are cut, end-user prices fall. Telecom operators argue this will boost penetration and digital inclusion.
For PTC, that means higher subscriber growth in broadband and corporate internet.
3. 5G readiness
The industry says large-scale fiber is critical for 5G.
PTC owns most of Pakistan’s fiber backbone, so it’s positioned to lease/wholesale fiber to mobile operators when 5G launches.
PTC faces massive challenges regarding
- Legacy fixed-line decline
- High operational costs, currency depreciation
- Competition from Mobile Network Operators (MNOs) viz. Jazz, Zong on mobile data
Beneficial if: The relief on fiber imports & internet taxes goes through as proposed.
PTC would see lower capex and potentially faster broadband growth, which is positive for revenue and valuation.
Less beneficial if: Only small tweaks are made, or if consumption taxes stay high.
PTC would still face cash flow pressure and slow payback on fiber investment, which the industry says takes 8-10 years.
The Fatima Fertilizer Company remains one of the better fertilizer plays on the PSX, supported by relatively stable off-takes (due to Mari Energies' dedicated supplies of feedstock gas), some improved cash flows (operating cash flows at PKR 9-10bn), and cost-effective strategies.
PE 10.8x
The company is currently yielding a PE of 10.8x and a PBV of 1.8x, while deciphering a dividend yield of ~6.5%.
Gross margins ~38%
The fertilizer company is benefiting from dedicated Mari feedstock supplies, lower finance costs (given de-leveraging), and urea and CAN demand, thus supporting gross margins (5-year average 38% - 42%) despite persistent inflationary pressures.
Dividend payout play....
The company also maintains operating cash flows of PKR 9 bn - 10 bn and improved payout trends, thus strengthening its 'defensive positioning' within the fertilizer sector.
Rear earth factor....
Moreover, FATIMA’s strategic exposure to Natural Resources Limited (NRL) alongside Mari Energies and Lucky Cement Group provides long-term upside potential through copper, gold, and rare earth exploration projects in Balochistan.
PAKT is deciphering a CY26 PE of 9.5x, which is notable given the company's status in the FMCG segment.
PAKT also yields a P/S multiple of 0.89x, which is the cheapest among FMCGs.
We also see PAKT showing a strong gross turnover of PKR 102 bn in 1QCY26.
PAKT is a 20% - 25% annual net margin company, given the demands of local cigarette brands.
PAKT reported a strong CY25 performance, with growth in Net Turnover, which was up by 15% YoY to PKR 139bn, supported by a 44% rise in Export Turnover to PKR 14.4bn.
Profit after tax is up by 7% to PKR 29.9bn, transcending EPS, also up by 7% to PKR 116.8.
On valuation, PAKT yields a trailing P/E of 11.54x, while Book value per share is PKR 183.82.
PAKT demonstrated strong profitability metrics, with ROA at 31.1% and ROE at 63.6%, while Dividend yield slightly declined to 11.1%, and EV/EBITDA stood at 6.69x.