SAZEW<\/a>),<\/strong> the company behind the popular four-wheelers in Pakistan, is gearing up for an impressive financial year. Here\u2019s why investors and auto fans are excited:<\/p>\n\n\n\n Big jump in profits and sales<\/h2>\n\n\n\n
In FY25, Sazgar is expected to earn Rs 287.6 per share<\/strong>, which is 119% higher than last year<\/strong>. That means the company will more than double its profit!<\/p>\n\n\n\n\n- Sales growth<\/strong>: 90% increase in total revenue, reaching Rs109.7 billion<\/li>\n\n\n\n
- Gross profit<\/strong>: Up by 115%, thanks to better pricing and stable exchange rates<\/li>\n\n\n\n
- Net profit<\/strong>: Rs17.4 billion, 119% more than last year<\/li>\n\n\n\n
- Dividend<\/strong>: The Company is expected to pay Rs 47 per share<\/strong>, a 135% increase<\/li>\n<\/ul>\n\n\n\n
What\u2019s driving the growth?<\/h2>\n\n\n\n\n- Stronger 4-wheeler sales<\/strong>: 23% higher than last year<\/li>\n\n\n\n
- Better pricing and currency stability<\/strong>: Helped keep costs in check<\/li>\n\n\n\n
- Cost control<\/strong>: Expenses remained well managed, especially finance costs<\/li>\n<\/ul>\n\n\n\n
Even though there was a 24% decline in sales compared to the last quarter (due to high sales in January), the overall yearly numbers look strong.<\/p>\n\n\n\n
Future looks bright: new hybrid vehicles<\/h2>\n\n\n\n
Sazgar is now preparing to enter the plug-in hybrid electric vehicle (PHEV)<\/strong> market before March 2026. That means cleaner, more efficient cars.<\/p>\n\n\n\n\n- Forecasts suggest unit sales may grow by 9%<\/strong> each year from FY26 to FY28<\/li>\n\n\n\n
- Targeting monthly sales of 1,250\u20131,500 hybrid units by FY27<\/li>\n\n\n\n
- Expected earnings for the next 3 years:\n
\n- FY27: Rs227<\/li>\n\n\n\n
- FY28: Rs266<\/li>\n\n\n\n
- FY29: Rs295<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
What about risks?<\/h2>\n\n\n\n
The company\u2019s gross profit margin (currently 30.6%) might drop a bit after auto industry incentives expire in 2026<\/strong>. But even with that, Sazgar is expected to remain profitable and competitive.<\/p>\n\n\n\n Valuation and stock target<\/h2>\n\n\n\n
Sazgar’s share price is expected to rise, with analysts setting a target of Rs1,667<\/strong> per share by June 2026. That includes a potential return of 40%<\/strong> (with dividend).<\/p>\n\n\n\nCurrently, the stock trades at an attractive valuation of:<\/p>\n\n\n\n
\n- 4.02x<\/strong> estimated earnings for FY26<\/li>\n\n\n\n
- 5.38x<\/strong> for FY27<\/li>\n\n\n\n
- 4.60x<\/strong> for FY28<\/li>\n<\/ul>\n\n\n\n
Bottom line<\/h2>\n\n\n\n
Sazgar Engineering is on a roll. With strong sales, big profits, and plans for hybrid vehicles, it is becoming a key player in Pakistan\u2019s auto sector. For investors, it offers both growth and solid dividends. For customers, it promises innovation on wheels.<\/p>\n\n\n\n
Source: Topline Securities <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Sazgar Engineering (SAZEW), the company behind the popular four-wheelers in Pakistan, is gearing up for an impressive financial year. Here\u2019s why investors and auto fans are excited:<\/p>\n","protected":false},"author":9252,"featured_media":6928,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,155],"tags":[63],"class_list":["post-9771","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\/9771","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=9771"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9771\/revisions"}],"predecessor-version":[{"id":9772,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9771\/revisions\/9772"}],"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=9771"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=9771"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=9771"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}