External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

Topline Securities is one of the fastest growing brokerage houses in Pakistan. It has strong equity brokerage, economic / equity research, mutual fund distribution, commodity trading and corporate finance & advisory functions. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Thematic (Sector/Industry)

<ul><li>Pakistan car sales (as reported by PAMA) clocked in at 15,104 units in Sep 2026, declined by 12% YoY and 3% MoM.</li><li>The decline in total sales is attributable to delayed clarity on the HEV/PHEV sales tax policy, restricting invoicing by companies.</li><li>We expect a positive momentum in auto sales in FY27, with double digit growth supported by the launch of new variants and the entry of new brands in the market.</li></ul>

Pakistan car sales (as reported by PAMA) clocked in at 15,104 units in Sep 2026, declined by 12% YoY and 3% MoM.The decline in total sales is attributable to delayed clarity on the HEV/PHEV sales tax policy, restricting invoicing by companies.We expect a positive momentum in auto sales in FY27, with double digit growth supported by the launch of new variants and the entry of new brands in the market.

Pakistan Automobiles: Car Sales Declined by 12% YoY and 3% MoM to 15,104 Units in Sep 2026

<ul>
<li>Pakistan listed Consumer sector is currently trading at FY26 PE of 11.3x which is at a discount to its historical average of 17.75x.</li>
<li>Segment wise, consumer staple (FMCG) is trading at FY26 PE of 14.3x vs. 10-year average of 23.27x, pharmaceutical is trading at FY26 PE of 12.3x vs. 10-year average PE of 20.69x and consumer discretionary is trading at PE of 7.9x vs. 10-year average PE of 9.3x.</li>
<li>Sector witnessed 5-year and 10-years sales/profit CAGR of 16%/20% and 14%/15% respectively while a D/Y of 6% in FY26.</li>
</ul>


Pakistan listed Consumer sector is currently trading at FY26 PE of 11.3x which is at a discount to its historical average of 17.75x.
Segment wise, consumer staple (FMCG) is trading at FY26 PE of 14.3x vs. 10-year average of 23.27x, pharmaceutical is trading at FY26 PE of 12.3x vs. 10-year average PE of 20.69x and consumer discretionary is trading at PE of 7.9x vs. 10-year average PE of 9.3x.
Sector witnessed 5-year and 10-years sales/profit CAGR of 16%/20% and 14%/15% respectively while a D/Y of 6% in FY26.


Equity Bottom-Up

<ul><li>Indus Motor Company (INDU) held its 37th Annual General Meeting today, following the release of its FY26 results.</li><li>To recall, the company reported gross margins of 10.3% in 4QFY26, down from 13.3% in 4QFY25 and 15.5% in 3QFY26.</li><li>We maintain our BUY stance on INDU, with the company trading at an FY27E PE of 4.8x and dividend yield of 13%.</li></ul>

Indus Motor Company (INDU) held its 37th Annual General Meeting today, following the release of its FY26 results.To recall, the company reported gross margins of 10.3% in 4QFY26, down from 13.3% in 4QFY25 and 15.5% in 3QFY26.We maintain our BUY stance on INDU, with the company trading at an FY27E PE of 4.8x and dividend yield of 13%.

Topline Flash Note: Indus Motor (INDU) - AGM Key Takeaways

<ul><li>Pakistani consumers today have access to 31 brands and more than 100 locally assembled models, offering a wide range of choices across all major vehicle segments.</li><li>INDU’s total sales (CKD + CBU) increased 33% YoY to 45,035 units, with passenger car sales rising 56% YoY, while commercial vehicle volumes remained broadly stable.</li><li>The Government’s decision in Jan 2026 to abolish the Baggage Scheme for used-vehicle imports and introduce mandatory pre-shipment inspection requirements under the Gift and Transfer of Residence schemes is a positive step towards strengthening Pakistan’s automotive manufacturing sector, contributing to a reduction in used-vehicle imports to ~38,000 units in FY26 from ~42,000 units in FY25, although they still account for 19% of total PAMA-reported sales.</li></ul>

Pakistani consumers today have access to 31 brands and more than 100 locally assembled models, offering a wide range of choices across all major vehicle segments.INDU’s total sales (CKD + CBU) increased 33% YoY to 45,035 units, with passenger car sales rising 56% YoY, while commercial vehicle volumes remained broadly stable.The Government’s decision in Jan 2026 to abolish the Baggage Scheme for used-vehicle imports and introduce mandatory pre-shipment inspection requirements under the Gift and Transfer of Residence schemes is a positive step towards strengthening Pakistan’s automotive manufacturing sector, contributing to a reduction in used-vehicle imports to ~38,000 units in FY26 from ~42,000 units in FY25, although they still account for 19% of total PAMA-reported sales.

Indus Motor Company (INDU) - Annual Report Key Takeaways

<ul><li>Indus Motor Company (INDU) announced its 4QFY26 results today, where the company recorded profit of Rs6.1bn (EPS of Rs76.73), down 5% YoY and 9% QoQ.</li><li>The result came lower than expectations due to lower-than-expected gross margins.</li><li>This took FY26 earnings at Rs25.5bn (EPS of Rs324.50) up 11% YoY compared to FY25 profit of Rs23bn (EPS of Rs292.74).</li></ul>

Indus Motor Company (INDU) announced its 4QFY26 results today, where the company recorded profit of Rs6.1bn (EPS of Rs76.73), down 5% YoY and 9% QoQ.The result came lower than expectations due to lower-than-expected gross margins.This took FY26 earnings at Rs25.5bn (EPS of Rs324.50) up 11% YoY compared to FY25 profit of Rs23bn (EPS of Rs292.74).

Indus Motor Company (INDU): 4QFY26 EPS at Rs76.73, Down 5% YoY and 9% QoQ – Lower Than Expectations

Pakistan

Indus Motor Company Limited was created through a joint venture agreement between the House of Habib, the Toyota Motor Corporation and the Toyota Tsusho Corporation, in order to assemble, manufacture and market Toyota vehicles.  The company is also the sole distributor of Toyota vehicles in Pakistan.

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Indus Motor Company (INDU PA)

Pakistan Automobiles: Car Sales Declined by 12% YoY and 3% MoM to 15,104 Units in Sep 2026

Pakistan car sales (as reported by PAMA) clocked in at 15,104 units in Sep 2026, declined by 12% YoY and 3% MoM. The decline in total sales is...

Topline Securities

Pakistan Listed Consumer Comp Sheet

Pakistan listed Consumer sector is currently trading at FY26 PE of 11.3x which is at a discount to its historical average of 17.75x. Segment wise,...

Topline Securities

Topline Flash Note: Indus Motor (INDU) - AGM Key Takeaways

Indus Motor Company (INDU) held its 37th Annual General Meeting today, following the release of its FY26 results. To recall, the company reported...

Topline Securities

Indus Motor Company (INDU) - Annual Report Key Takeaways

Pakistani consumers today have access to 31 brands and more than 100 locally assembled models, offering a wide range of choices across all major...

Topline Securities

Indus Motor Company (INDU): 4QFY26 EPS at Rs76.73, Down 5% YoY and 9% QoQ – Lower Than Expectations

Indus Motor Company (INDU) announced its 4QFY26 results today, where the company recorded profit of Rs6.1bn (EPS of Rs76.73), down 5% YoY and 9%...

Topline Securities

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