{"id":11276,"date":"2025-08-19T13:45:30","date_gmt":"2025-08-19T08:45:30","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=11276"},"modified":"2025-08-19T13:45:40","modified_gmt":"2025-08-19T08:45:40","slug":"mughal-iron-steel-mughal-power-savings-growing-market-share","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/mughal-iron-steel-mughal-power-savings-growing-market-share\/","title":{"rendered":"Mughal Iron &amp; Steel (MUGHAL): Power Savings &amp; Growing Market Share"},"content":{"rendered":"\n<p><strong>Mughal Iron &amp; Steel (<a href=\"https:\/\/ksestocks.com\/blog\/tag\/mughal\/\" data-type=\"post_tag\" data-id=\"42\" target=\"_blank\" rel=\"noreferrer noopener\">MUGHAL<\/a>) <\/strong>is gearing up for an exciting phase, with two big developments that could reshape its profitability in the coming years: a new coal-fired power plant and a stronger position in the steel market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Cost savings from the new power plant<\/h2>\n\n\n\n<p>MUGHAL\u2019s subsidiary, Mughal Energy Limited, is setting up a <strong>36.5MW coal-fired power plant<\/strong>. This is not just about adding power; it\u2019s about reducing costs in a big way.<\/p>\n\n\n\n<p>Currently, electricity from the grid costs around <strong>PKR 35 per unit<\/strong>. With the new plant, this cost could drop to <strong>PKR 27-28 per unit<\/strong> starting FY26. That\u2019s a major saving!<\/p>\n\n\n\n<p>Over the next 5 years, these savings are expected to add <strong>30% to earnings<\/strong>, which means an average of <strong>PKR 4.3 per share<\/strong>. More importantly, it will improve margins in the ferrous (steel) business by <strong>3\u20135%<\/strong>, pushing overall margins to the <strong>10\u201311% range<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Stronger grip on the steel market<\/h2>\n\n\n\n<p>MUGHAL isn\u2019t just saving money; it\u2019s also growing its market share.<\/p>\n\n\n\n<p>In the past, the company held about <strong>5% share<\/strong> in the long steel market. But in FY24 and FY25, this climbed to <strong>7\u20138%<\/strong>, and analysts expect it to stay in this range going forward, averaging <strong>7.8% over the next 5 years<\/strong>.<\/p>\n\n\n\n<p><strong>What\u2019s driving this?<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A strong distribution network <\/li>\n\n\n\n<li>The high-margin copper business <\/li>\n\n\n\n<li>Smart working capital management <\/li>\n<\/ul>\n\n\n\n<p>While much of the steel industry is struggling at low capacity, MUGHAL is running at <strong>55\u201360% utilization<\/strong> and could scale up to <strong>70% by FY30<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why does this matter for investors?<\/h2>\n\n\n\n<p>With <strong>lower power costs<\/strong> and a <strong>bigger market share<\/strong>, MUGHAL is setting itself up for steady growth in earnings and margins. For investors, this makes the stock an interesting long-term play in Pakistan\u2019s steel sector.<\/p>\n\n\n\n<p><strong>Source: Arif Habib Limited <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mughal Iron &#038; Steel (MUGHAL) is gearing up for an exciting phase, with two big developments that could reshape its profitability in the coming years: a new coal-fired power plant and a stronger position in the steel market.<\/p>\n","protected":false},"author":9252,"featured_media":6531,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,155],"tags":[42],"class_list":["post-11276","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-fundamental-analysis","tag-mughal"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MUGHAL-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MUGHAL-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MUGHAL-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MUGHAL-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11276","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=11276"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11276\/revisions"}],"predecessor-version":[{"id":11277,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11276\/revisions\/11277"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6531"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=11276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=11276"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=11276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}