Why demand is picking up for International Steels Limited (ISL)

International Steels Limited (ISL) is in a great spot right now. As Pakistan’s economy starts to improve, more people are spending, and that’s helping ISL grow fast.

Let’s break it down:

Growth in cars and motorcycles = more steel sales

In FY24, car and motorcycle sales were slow because the economy was under pressure. But now, things are changing:

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• Interest rates have dropped from 22% to 11%
• Inflation is at its lowest in years
• People feel more confident to spend

As a result:

• Car production went up to 72 points (from 53.5 last year)
• Motorcycle production also surged, jumping to 79 points (from 59.8 last year)

With the State Bank possibly easing auto financing rules, car sales may rise further, and every new vehicle means more steel needed from companies like ISL.

Boom in electrical equipment also helps ISL

Another bright spot is the electrical appliances sector. As inflation comes down and buying power improves, more people are buying appliances, and those need steel parts too.

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This is great news for ISL’s sales growth in FY25 and beyond.

Moving into high-margin products

ISL is not just selling basic steel anymore. It now makes value-added products like:

• Slitting steel
• C-Channels
• Profiling
• Z Purlins

These products are used in different industries and sell for higher prices, meaning better profit margins for the company.

The bottom line

With more cars, bikes, and appliances being made, and with better products and growing demand, ISL is set for strong sales growth ahead.

If you’re an investor watching Pakistan’s manufacturing recovery, ISL could be one to watch.

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →