Pak Elektron

Pak Elektron Limited. Pak Elektron Limited is engaged in manufacturing and sale of electrical capital goods and domestic appliances. The Company operates through two segments: Power Division and Appliances Division. The Power Division is engaged in manufacturing and distribution of transformers, switchgears, energy meters, power transformers, construction of grid stations and electrification works. The Appliances Division is engaged in manufacturing, assembling and distribution of refrigerators, deep freezers, air conditioners, microwave ovens, washing machines and other home appliances. It offers services to power utilities, industries, individual customers, housing and commercial projects. Its engineering, procurement and construction (EPC) contracting division delivers custom designed and built high voltage and extra high voltage grid stations, electrification of housing projects and industrial parks. The Company's subsidiary is PEL Marketing (Private) Limited.
  • TickerPAEL
  • ISINPK0034601010
  • ExchangePakistan Stock Exchange
  • SectorHousehold Goods & Home Construction
  • CountryPakistan

Analysts

Team AKD Research

AKD STOCK SMART, Aug 30, 2019

The market retraced 62% of its rally of the previous week, tumbling down by 5.35% (1,678 points) to 29,672 points during the outgoing week. The placement of Pakistan on ‘enhanced expedited follow up list’ by APG on Friday August 23rd, 2019 crushed investor sentiment, with market closing the first trading session in red. In addition to that, the reported potential divestment of PPL (10% of shares) and OGDC (7% of shares), index heavy weights, built further pressure on KSE-100. The GoP also introduced presidential ordinance to waive off 50% of outstanding GIDC overdues from the CNG, power, ferti...

Ali Asghar Poonawala

PAEL: Languishing under weak demand outlook, (AKD Daily, Sep 06, 2019)

Post release of detailed accounts for 1HCY19, PAEL’s results showcase weak topline growth, where power division sales continued to slip and appliance demand failed to punch through with sizeable growth, slagging under a slew of macro dampeners Citing earnings seasonality and a slow working capital picture, we retain our stance on 2HCY19 earnings being particularly weak, where significant margin depletion is likely as more expensive inventory will be factored into product costs and implementation of adverse taxation regime on appliances weakens demand To replenish its liquidity, management in...

Team AKD Research

PAEL: Dealing with a tough audience

Reading annual accounts for PAEL, we prune our estimates based on abundant demand headwinds for both business segments, GMs caving-in to rising cost pressures and higher finance costs as the firm supplants working capital outflows with (now costlier) ST borrowing Moreover, dismal sales performance in CY19 crystallizes our soft outlook with macro headwinds, combined with additional constraints on the horizon (power tariff hikes, controlled public sector power outlays), keeping us tilted towards subdued earnings growth over the medium term On the cost side, subdued COGs headers and below the l...

Nabeel Khursheed

Pak Elektron (PAEL): 3Q2018 EPS of Rs0.2, -51% YoY (-83% QoQ); (Below expectations)

Pak Elektron (PAEL) announced its 3Q2018 earnings where the company’s sales underperformed our expectations. This was mainly due to lower than anticipated volumetric sales of appliances, as per our channel checks. While yearly appliances sales improved, it remained below our estimated sales as competition in the sector kept PAEL’s volumetric growth in check, we believe. Power division also suffered from lower than expected sales in 3Q2019. We believe that this was due to slowdown in real estate activities, thereby affecting construction of housing schemes, and temporary halt in govt. project...

PAEL: Primed for a rebound

Terse market conditions have been particularly unkind to the consumer durables space, where the outlook on consumer demand and drying-up of power spending crystalizes dampeners for PAEL. Correcting ~49%CYTD, PAEL's valuation set looks enticing enough to generate investor interest, where despite rationalizing our growth assumptions for CY18-21F earnings, accommodating PkR weakness and rising cost of borrowing, the stock offers 36.5% upside at current levels. Threats to pricing power in a challenging macro backdrop, accompanied by slow-down in power sector investments from public sector avenu...

Team AKD Research

PAEL: Dealing with a tough audience

Reading annual accounts for PAEL, we prune our estimates based on abundant demand headwinds for both business segments, GMs caving-in to rising cost pressures and higher finance costs as the firm supplants working capital outflows with (now costlier) ST borrowing Moreover, dismal sales performance in CY19 crystallizes our soft outlook with macro headwinds, combined with additional constraints on the horizon (power tariff hikes, controlled public sector power outlays), keeping us tilted towards subdued earnings growth over the medium term On the cost side, subdued COGs headers and below the l...

Nabeel Khursheed

Pak Elektron (PAEL): 3Q2018 EPS of Rs0.2, -51% YoY (-83% QoQ); (Below expectations)

Pak Elektron (PAEL) announced its 3Q2018 earnings where the company’s sales underperformed our expectations. This was mainly due to lower than anticipated volumetric sales of appliances, as per our channel checks. While yearly appliances sales improved, it remained below our estimated sales as competition in the sector kept PAEL’s volumetric growth in check, we believe. Power division also suffered from lower than expected sales in 3Q2019. We believe that this was due to slowdown in real estate activities, thereby affecting construction of housing schemes, and temporary halt in govt. project...

PAEL: Primed for a rebound

Terse market conditions have been particularly unkind to the consumer durables space, where the outlook on consumer demand and drying-up of power spending crystalizes dampeners for PAEL. Correcting ~49%CYTD, PAEL's valuation set looks enticing enough to generate investor interest, where despite rationalizing our growth assumptions for CY18-21F earnings, accommodating PkR weakness and rising cost of borrowing, the stock offers 36.5% upside at current levels. Threats to pricing power in a challenging macro backdrop, accompanied by slow-down in power sector investments from public sector avenu...

Ali Asghar Poonawala

PAEL: Power division remains a pain in 1HCY18

Management of PAEL conducted an analyst briefing going over 1HCY18 operational parameters, coupled with guidance on CY18 results and outlook for additional business lines. Key highlights were: 1) the company has issued gross sales guidance aiming to reach topline of PkR44.95bn (+6%YoY) where tepid growth results from both segments undergoing heightened competition, 2) power division continuing to lag, expected to constitute 32% of Gross sales for CY18 arising from a slowdown in power transformer/energy meter/switchgear business revenues to punch through 2/3/6%YoY growth, and 3) incremental CAP...

Nabeel Khursheed

Pak Elektron (PAEL) : Analyst Briefing 1H2018

Topline Securities conducted analyst briefing of Pak Elektron today where the company discussed its 1H2018 financial performance and outlook. Following are key takeaways: PAEL announced consolidated earnings of Rs1,215mn (EPS Rs2.4/share), down 55% YoY during 1H2018. While sales were in line with estimates, earnings fell short of our expectation primarily on the back of lower than anticipated gross margins, down 5ppts to 25%. This was on the back of higher commodity prices and currency devaluation. Appliances Division: Appliances sales contracted by 9% YoY in 1H2018 mainly due to 16% YoY ...

Team AKD Research

AKD STOCK SMART, Aug 30, 2019

The market retraced 62% of its rally of the previous week, tumbling down by 5.35% (1,678 points) to 29,672 points during the outgoing week. The placement of Pakistan on ‘enhanced expedited follow up list’ by APG on Friday August 23rd, 2019 crushed investor sentiment, with market closing the first trading session in red. In addition to that, the reported potential divestment of PPL (10% of shares) and OGDC (7% of shares), index heavy weights, built further pressure on KSE-100. The GoP also introduced presidential ordinance to waive off 50% of outstanding GIDC overdues from the CNG, power, ferti...

Ali Asghar Poonawala

PAEL: Languishing under weak demand outlook, (AKD Daily, Sep 06, 2019)

Post release of detailed accounts for 1HCY19, PAEL’s results showcase weak topline growth, where power division sales continued to slip and appliance demand failed to punch through with sizeable growth, slagging under a slew of macro dampeners Citing earnings seasonality and a slow working capital picture, we retain our stance on 2HCY19 earnings being particularly weak, where significant margin depletion is likely as more expensive inventory will be factored into product costs and implementation of adverse taxation regime on appliances weakens demand To replenish its liquidity, management in...

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

ResearchPool Subscriptions

Get the most out of your insights

Get in touch