{"id":9879,"date":"2025-07-16T13:15:47","date_gmt":"2025-07-16T08:15:47","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=9879"},"modified":"2025-07-16T13:22:54","modified_gmt":"2025-07-16T08:22:54","slug":"millat-tractors-mtl-set-to-ride-high-on-punjabs-green-tractor-scheme","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/millat-tractors-mtl-set-to-ride-high-on-punjabs-green-tractor-scheme\/","title":{"rendered":"Millat Tractors (MTL) set to ride high on Punjab\u2019s green tractor scheme"},"content":{"rendered":"\n

Millat Tractors Limited (MTL<\/a>), <\/strong>Pakistan\u2019s leading tractor maker, is all set for a strong rebound in FY26, thanks to the Punjab Government\u2019s Green Tractor Scheme Phase-II<\/strong>.<\/p>\n\n\n\n

Government support boosts tractor sales<\/h2>\n\n\n\n

Punjab\u2019s new scheme will provide 20,000 subsidized tractors<\/strong> to farmers starting from August 2025<\/strong>. The breakdown includes:<\/p>\n\n\n\n

    \n
  • 10,000 tractors (50\u201365 horsepower)<\/strong> with a PKR 500,000 subsidy<\/strong><\/li>\n\n\n\n
  • 10,000 tractors (75\u2013125 horsepower)<\/strong> with a PKR 1 million subsidy<\/strong><\/li>\n<\/ul>\n\n\n\n

    MTL is in a strong position to benefit from this program. Why? Because it already has a 64% market share<\/strong> and offers exactly the kind of tractors the scheme supports.<\/p>\n\n\n\n

    Big impact expected in FY26<\/h2>\n\n\n\n

    Deliveries from Phase-II are expected to begin in 2QFY26<\/strong>, and analysts believe MTL could sell an additional 8,000\u201310,000 tractors<\/strong> because of this program. That alone could boost the company\u2019s earnings by PKR 14\u201317 per share<\/strong> in FY26.<\/p>\n\n\n\n

    In the first phase<\/strong> of the scheme (Nov\u2013Dec 2024), MTL\u2019s sales jumped to 18,580 units<\/strong>, far higher than earlier expectations. The scheme helped the entire tractor industry recover from weak sales, especially when farmers were struggling with poor crop prices and income.<\/p>\n\n\n\n

    Challenges in FY25, but recovery ahead<\/h2>\n\n\n\n

    In the first nine months of FY25, MTL\u2019s revenues fell by 43%<\/strong> due to weaker demand and higher finance costs. But sales recovered toward the end of the year, thanks to the earlier launch of Phase-I of the tractor scheme.<\/p>\n\n\n\n

    Now with Punjab\u2019s agricultural budget rising to PKR 123 billion<\/strong>, and a large chunk of that reserved for the Green Tractor Scheme, the outlook is turning positive again.<\/p>\n\n\n\n

    Valuation & stock recommendation<\/h2>\n\n\n\n

    Analysts at Taurus Securities Limited maintain a \u2018BUY\u2019<\/strong> rating on MTL, with a December 2025 target price of PKR 650<\/strong>, offering about 14% upside<\/strong> from current levels. The stock is expected to benefit from:<\/p>\n\n\n\n

      \n
    • Government subsidies<\/li>\n\n\n\n
    • Better farm conditions (especially in Punjab)<\/li>\n\n\n\n
    • Lower finance costs<\/li>\n\n\n\n
    • Improved margins<\/li>\n<\/ul>\n\n\n\n

      Risks to watch<\/h2>\n\n\n\n
        \n
      • Delay in subsidy payments<\/li>\n\n\n\n
      • Weak farm economy<\/li>\n\n\n\n
      • Unresolved sales tax issues<\/li>\n\n\n\n
      • Loss of market share to competitors<\/li>\n<\/ul>\n\n\n\n

        With government backing and strong demand expected, Millat Tractors<\/strong> looks ready for a comeback. If you’re an investor tracking agri-sector growth or PSX-listed manufacturers, this is one stock worth keeping on your radar.<\/p>\n\n\n\n

        Source: Taurus Securities Limited <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

        Millat Tractors Limited (MTL), Pakistan\u2019s leading tractor maker, is all set for a strong rebound in FY26, thanks to the Punjab Government\u2019s Green Tractor Scheme Phase-II.<\/p>\n","protected":false},"author":9252,"featured_media":6844,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,155],"tags":[148],"class_list":["post-9879","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-fundamental-analysis","tag-mtl"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MTL-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MTL-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MTL-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MTL-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9879","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=9879"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9879\/revisions"}],"predecessor-version":[{"id":9880,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9879\/revisions\/9880"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6844"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=9879"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=9879"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=9879"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}