{"id":4982,"date":"2024-05-13T16:47:47","date_gmt":"2024-05-13T11:47:47","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=4982"},"modified":"2024-05-13T16:47:49","modified_gmt":"2024-05-13T11:47:49","slug":"js-research-reiterates-buy-rating-on-pabc","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/js-research-reiterates-buy-rating-on-pabc\/","title":{"rendered":"JS Research reiterates BUY rating on PABC"},"content":{"rendered":"\n<p>JS Research has just released an update on its coverage of<a href=\"https:\/\/ksestocks.com\/blog\/tag\/pabc\/\" target=\"_blank\" rel=\"noopener\" title=\"PABC\"> PABC<\/a> stock. The research house has reiterated its Dec 24 <strong>target price<\/strong> to <strong>Rs. 95 per share<\/strong>.<\/p>\n\n\n\n<p>The key points in the report are:<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Reiterating Buy Rating<\/h2>\n\n\n\n<p>The research house reiterates a Buy rating for PABC (name of the company), with a target price of <strong>Rs. 95 per share<\/strong>, offering a potential upside of <strong>46%<\/strong> from current levels. Despite some adjustments in earnings estimates for CY24E\/CY25E due to weaker domestic sales, the outlook remains positive.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Strong Performance in CY23<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>PABC witnessed significant growth in CY23, with a <strong>39%<\/strong> YoY increase in revenues and an impressive <strong>86%<\/strong> YoY growth in bottom-line profits.<\/li>\n\n\n\n<li>Exports played a crucial role, with a<strong> 96%<\/strong> YoY increase. Notably, exports to Afghanistan doubled to <strong>Rs. 9 billion<\/strong>, and new exports to Bangladesh reached <strong>Rs. 1 billion<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Focus on Domestic Market Challenges<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The domestic market faced challenges due to macroeconomic pressures affecting consumer purchasing power, especially in the food and beverages sector.<\/li>\n\n\n\n<li>PABC responded by diversifying its customer base and improving its local presence by supplying can packaging to cola brands previously only available in PET bottles.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Financial Position and Investments<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>PABC holds significant cash and short-term investments of <strong>Rs. 8 billion<\/strong> (<strong>Rs. 22 per share<\/strong>) as of March 2024, offering a <strong>Free cash flow<\/strong> yield of <strong>22%<\/strong> for CY24E.<\/li>\n\n\n\n<li>The company reduced its long-term debt and invested in fixed-income securities during CY23.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Outlook for CY24 and Beyond<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Despite weaker domestic sales impacting margins in 1QCY24, PABC is optimistic about a recovery in domestic demand as macroeconomic conditions stabilize.<\/li>\n\n\n\n<li>Discussions are underway with major cola brands for long-term supply agreements, potentially boosting export revenues.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Court Case and Tax Provisions<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>PABC continues to pursue a court case regarding tax applicability, with potential implications on taxes paid since CY22 if a favorable decision is reached.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Analyst Recommendation<\/h2>\n\n\n\n<p>The research house maintains a positive outlook on <a href=\"https:\/\/ksestocks.com\/blog\/tag\/pabc\/\" target=\"_blank\" rel=\"noopener\" title=\"PABC\">PABC<\/a>, anticipating a recovery in domestic sales and sustained export growth. The stock&#8217;s current price offers an attractive investment opportunity with strong upside potential.<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Metric<\/th><th class=\"has-text-align-left\" data-align=\"left\">CY23 Actual (Rs mn)<\/th><th class=\"has-text-align-left\" data-align=\"left\">CY24 Forecast (Rs mn)<\/th><th class=\"has-text-align-left\" data-align=\"left\">CY25 Forecast (Rs mn)<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">Sales<\/td><td class=\"has-text-align-left\" data-align=\"left\">19,736<\/td><td class=\"has-text-align-left\" data-align=\"left\">22,757<\/td><td class=\"has-text-align-left\" data-align=\"left\">29,470<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Sales Growth<\/td><td class=\"has-text-align-left\" data-align=\"left\">39%<\/td><td class=\"has-text-align-left\" data-align=\"left\">15%<\/td><td class=\"has-text-align-left\" data-align=\"left\">30%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Gross Margins<\/td><td class=\"has-text-align-left\" data-align=\"left\">40%<\/td><td class=\"has-text-align-left\" data-align=\"left\">35%<\/td><td class=\"has-text-align-left\" data-align=\"left\">32%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">PAT (Profit After Tax)<\/td><td class=\"has-text-align-left\" data-align=\"left\">5,018<\/td><td class=\"has-text-align-left\" data-align=\"left\">5,254<\/td><td class=\"has-text-align-left\" data-align=\"left\">6,305<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">EPS (Earnings Per Share) (Rs)<\/td><td class=\"has-text-align-left\" data-align=\"left\">13.90<\/td><td class=\"has-text-align-left\" data-align=\"left\">14.55<\/td><td class=\"has-text-align-left\" data-align=\"left\">17.46<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">EPS Growth<\/td><td class=\"has-text-align-left\" data-align=\"left\">86%<\/td><td class=\"has-text-align-left\" data-align=\"left\">5%<\/td><td class=\"has-text-align-left\" data-align=\"left\">20%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">DPS (Dividends Per Share) (Rs)<\/td><td class=\"has-text-align-left\" data-align=\"left\">3.50<\/td><td class=\"has-text-align-left\" data-align=\"left\">7.00<\/td><td class=\"has-text-align-left\" data-align=\"left\">7.50<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">P\/E Ratio (x)<\/td><td class=\"has-text-align-left\" data-align=\"left\">3.60<\/td><td class=\"has-text-align-left\" data-align=\"left\">4.48<\/td><td class=\"has-text-align-left\" data-align=\"left\">3.74<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Dividend Yield (D\/Y)<\/td><td class=\"has-text-align-left\" data-align=\"left\">7%<\/td><td class=\"has-text-align-left\" data-align=\"left\">11%<\/td><td class=\"has-text-align-left\" data-align=\"left\">11%<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\"><strong>Source:<\/strong><em> Company Accounts, JS Research<\/em><\/figcaption><\/figure>\n\n\n\n<p>This table presents financial metrics for the company, including actuals for CY23 and forecasts for CY24 and CY25. Sales, profits, earnings per share (EPS), dividends per share (DPS), and other ratios such as gross margins and P\/E ratios are detailed, providing insight into the company&#8217;s performance and expected growth trajectory.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" width=\"727\" height=\"247\" src=\"https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/05\/Screenshot-2024-05-13-153009.png\" alt=\"\" class=\"wp-image-4985\" srcset=\"https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/05\/Screenshot-2024-05-13-153009.png 727w, https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/05\/Screenshot-2024-05-13-153009-640x217.png 640w, https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/05\/Screenshot-2024-05-13-153009-400x136.png 400w, https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/05\/Screenshot-2024-05-13-153009-367x125.png 367w\" sizes=\"(max-width: 727px) 100vw, 727px\" \/><\/figure>\n<\/div>\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Disclosure:<\/strong><\/p>\n\n\n\n<p><em>The information in this article is based on research by JS Research. All efforts have been made to ensure the data represented in this article is as per the research report. This report should not be considered investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>JS Research has just released an update on its coverage of PABC stock. The research house has raised its Dec 24 target price to Rs. 95 per share.<\/p>\n","protected":false},"author":8,"featured_media":4986,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[139],"tags":[256],"class_list":["post-4982","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analyst-ratings","tag-pabc"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/05\/PABC-ANALYST-RATINGS-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/05\/PABC-ANALYST-RATINGS-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/05\/PABC-ANALYST-RATINGS-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/05\/PABC-ANALYST-RATINGS.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/4982","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\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=4982"}],"version-history":[{"count":0,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/4982\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/4986"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=4982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=4982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=4982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}