Why investors are bullish on International Steels Limited (ISL)

International Steels Limited (ISL) is getting strong attention from investors, and for good reason. In a recent report, Darson gives the stock a “BUY” rating with a target price of PKR 142.67/share by June 2026. That means there’s a 47% upside potential from current levels.

So why are analysts so optimistic? Let’s break it down in simple terms:

Strong demand = higher sales

ISL makes steel products that are used in cars, motorcycles, and electrical equipment. These sectors are growing, and that means more demand for steel. As one of Pakistan’s key suppliers, ISL is in a good position to grow its sales volume in the coming months.

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Lower taxes = better margins

In the FY26 budget, the regulatory duty on steel imports was reduced from 5% to 2.5%. This means lower costs for ISL when bringing in raw materials, which should boost profits. This move also makes ISL more competitive in the local market.

Fair play for domestic producers

One big issue in the past was the tax gap between local producers and those in FATA/PATA regions. That gap allowed cheaper steel from those areas to hurt ISL’s pricing power. The government has now imposed a 10% tax on producers in those areas and is also cracking down on steel smuggling. This levels the playing field for ISL and supports better pricing.

New export opportunities

The U.S. recently put tariffs on Vietnamese steel, and this is a big opening for ISL — especially since the U.S. is already a key export customer. ISL is also exploring new markets like Saudi Arabia, Europe, and Malaysia to further grow its international sales.

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The bottom line

With stronger demand, lower input costs, better government support, and growing export markets, ISL is positioned for solid growth. That’s why analysts are recommending investors to consider buying ISL shares, targeting nearly 50% upside by mid-2026.

⚠️ 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 →