EFERT vs FFC, which is the better investment?

Being key players in Pakistan’s fertilizer industry FFC and EFERT sell urea which supports Pakistan’s agriculture sector. Both are considered attractive investments in the market, which is why the EFERT vs FFC debate often comes up.

Both company’s profit margins are sensitive to gas supply (a major raw material), urea prices, and fertilizers demand from farmers.  

Both companies pay dividends to investors which makes them appealing especially when interest rates are lower than dividend yields.

Let’s compare them at a deeper level to see if there are any advantages to holding just one of them, or if it’s better to just have both the stocks in the portfolio.

EFERT VS FFC Comparison

Factor	EFERT	FFC
Business model	EFERT is backed by a very strong group in Engro Corporation, which has a history of great corporate management. As a result, EFERT earnings are also stable, making it a good dividend player.	FFC is an established player in the fertilizer industry and has a strong business model and efficient operations which means it is more consistent with generating higher profits. Thanks to a lower gas cost, the company has better margins than EFERT.
Management	EFERT is backed by a very strong group in Engro Corproation, which has a history of great corporate management. As a result, EFERT earnings are also stable, making it a good dividend player.	FFC is backed by the Fauji Foundation, which has established strong roots in the Pakistan business scene. While the management can be questionable at times, the company is resolving its bulky corporate structure after the FFBL merger. If its other investments, which have sometimes dragged the stock down, also start performing, the stock could become a growth stock and easily outpace EFERT.
Dividends	EFERT’s dividend yield hovers around the current policy rate (interest rate). If the stock is giving a forward dividend yield greater than the expected interest rate in the next 12 months, it is considered a good stock to buy.	FFC’s dividend yield also hovers around the current policy rate (interest rate). If the stock is giving a forward dividend yield greater than the expected interest rate in the next 12 months, it is considered a good stock to buy. However, it must be noted that since FFC is a holding company and has multiple other investments, investors are sometimes willing to buy it on a lower dividend yield than EFERT because of the growth prospects of its other businesses.
Market share	EFERT’s market share in urea manufacturing is 26% which is less as compared to FFC.	FFC could own more than half of the country’s urea market after its FFBL merger and AGL acquisition. It is now also the sole manufacturer of DAP in the country.
Impact of gas prices	EFRT is already getting gas at expensive rates as compared to FFC. So if the gas price goes up their profit margins will affect negatively.	FFC is getting gas at cheaper rates and benefitting by selling it at the same price as EFERT. However, if the gas price subsidy is removed then it will significantly affect FFC.

Which is the better investment?

Both EFERT and FFC are solid dividend investments. As long as you are getting a dividend yield that is above the prevailing interest rate, they can be considered a good choice for dividend investors.

If investors find it hard to decide which is the better company, it is also not a bad idea to add both to the portfolio as it will give coverage of a majority of the fertilizer business in Pakistan.

What are the analysts saying?

EFERT

According to our database, EFERT has an average analyst price target for Dec 2025 of Rs. 230 based on estimates of 10 different analysts. This includes the highest price target of Rs. 249 by Pearl Global Securities and the lowest price target of Rs. 198 by AHL.

The average analyst price target of Rs. 230 implies an upside of 5.9% from here on. The expected dividend of the company is Rs. 25 in the next year which corresponds to a dividend yield of 11.5%. As a consistent dividend payer company EFERT can be considered a valuable investment opportunity.

Here is how different research firms have set their target prices for Dec 2025:

Research Firm	EFERT Dec 25 target price (Rs.)
AKD Securities	242
AHL	198
IGI	243
JS Global	240
Inter Market Securities	220
Taurus Securities	232
Foundation Securities	223
Insight Securities	221
Pearl Securities	249
Ismail Iqbal Securities	234

FFC

According to our database, FFC has an average analyst price target for Dec 2025 of Rs. 439 based on estimates of 12 different analysts. This includes the highest price target of Rs. 583 by AKD Securities and the lowest price target of Rs. 320 by Inter Market Securities.

The average analyst price target of Rs. 439 implies an upside of 12.5 % from here on. The expected dividend of the company is Rs. 45 which corresponds to a dividend yield of 11.5%. As FFC is consistent with dividend payments it suggests a stable investment opportunity.

Here is how different research firms have set their target prices for Dec 2025:

Research Firm	FFC Dec 25 target price (Rs.)
AKD Securities	583
AHL	362
IGI	487
JS Global	440
Inter Market Securities	320
Taurus Securities	430
Foundation Securities	439
Insight Securities	368
Al Habib Capital Markets	456
Spectrum	461
Pearl Securities	480
Ismail Iqbal Securities	377