{"id":7158,"date":"2025-01-09T18:03:14","date_gmt":"2025-01-09T13:03:14","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=7158"},"modified":"2025-01-21T12:18:46","modified_gmt":"2025-01-21T07:18:46","slug":"sazgar-engineerings-sazew-fy25-plans-look-promising","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/sazgar-engineerings-sazew-fy25-plans-look-promising\/","title":{"rendered":"Sazgar Engineering&#8217;s (SAZEW) FY25 plans look promising"},"content":{"rendered":"\n<p>The SUV auto Industry and its major player in Pakistan Sazgar Engineering Works Limited (<strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/sazew\/\" target=\"_blank\" rel=\"noopener\" title=\"SAZEW\">SAZEW<\/a><\/strong>) started transferring the Great Wall Motors (GWM) Haval model to Pakistan in August 2022. The competition in the hybrid SUV segment is gradually increasing with Sazgar forming a dominant market share of <strong>45% <\/strong>of the total Haval SUVs sold in <strong>FY24<\/strong>. The SUV market in Pakistan surged to <strong>16,000 units<\/strong> in FY24 and is expected to reach <strong>25,000 units<\/strong> with <strong>60%<\/strong> growth in FY25.<\/p>\n\n\n\n<p>Sazgar has the highest gross margins among all auto sector Companies and achieved <strong>29%<\/strong>, thanks to tax exemptions on auto parts. In the coming years, the <strong>luxury TANK-500 HEV<\/strong> is proposed to be launched by FY26 so as to make the company\u2019s portfolio more robust. F25 continues to hold Sazgar with strong growth fundamentals and an attractive FY25 P\/E ratio of <strong>4.4x<\/strong> against the sector average P\/E ratio of <strong>9.0x.<\/strong><\/p>\n\n\n\n<p>New car sales for Sazgar\u2019s four-wheelers, which comprise 90% of the company, are projected to increase by <strong>64%<\/strong> YoY to <strong>PKR 21,800m<\/strong> by FY25. The company has set a target price of <strong>Rs. 1,600 <\/strong>a share, providing the investors a total right point of <strong>46%<\/strong>, mainly due to the highest demand of Hybrid SUVs and its Market share. <\/p>\n\n\n\n<p>With new entrants likely to come into the market such as MG HS PHEV and Honda HR-V HEV, Sazgar has revised its competitive strategy combined with its market dominance, and the capital expenditure of <strong>PKR 4.5 billion<\/strong> for the fiscal year 2021-2025 is expected to maintain the high growth and profitability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are the analysts saying<\/h2>\n\n\n\n<p>According to our database, <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/sazew\/\" target=\"_blank\" rel=\"noopener\" title=\"SAZEW\">SAZEW<\/a><\/strong> has an average analyst price target for Dec 2025 of <strong>Rs. 1482<\/strong> based on estimates of 5 different analysts. This includes the highest price target of <strong>Rs. 1746 <\/strong>by Insight Securities and the lowest price target of <strong>Rs. 929<\/strong> by Arif Habib Limited.<\/p>\n\n\n\n<p>The average analyst price target of <strong>Rs. 1482<\/strong> implies an upside of<strong> 43%<\/strong> from here on. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sazgar Engineering Works Limited (SAZEW) started transferring the Great Wall Motors (GWM) Haval model to Pakistan in August 2022<\/p>\n","protected":false},"author":11,"featured_media":6928,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,155],"tags":[63],"class_list":["post-7158","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-fundamental-analysis","tag-sazew"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/SAZEW-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/SAZEW-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/SAZEW-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/SAZEW-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/7158","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\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=7158"}],"version-history":[{"count":0,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/7158\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6928"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=7158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=7158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=7158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}