External broker reports(aggregated public sources), Topline Securities

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External broker reports(aggregated public sources)

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Equity Bottom-Up

Pak Elektron Limited (Pael) / Equity Bottom-Up

<ul><li>Pak Elektron Limited (PAEL) announced its 2Q2026 result wherein company posted earnings of Rs1,749mn (EPS of Rs1.89) up by 2% YoY and 2x QoQ.</li><li>The result came slightly higher than expectations due to higher-than-expected gross profit (GP) margins and lower than expected effective tax rate (ETR).</li><li>Net sales increased by 5% YoY and 9% QoQ to Rs22bn, reaching an all-time quarterly high.</li></ul>

Pak Elektron Limited (PAEL) announced its 2Q2026 result wherein company posted earnings of Rs1,749mn (EPS of Rs1.89) up by 2% YoY and 2x QoQ.The result came slightly higher than expectations due to higher-than-expected gross profit (GP) margins and lower than expected effective tax rate (ETR).Net sales increased by 5% YoY and 9% QoQ to Rs22bn, reaching an all-time quarterly high.

Pak Elektron (PAEL): 2Q2026 EPS at Rs1.89, Up by 2% YoY and 2x QoQ – Earnings Slightly Higher Than Expectations

<ul><li>We revise down our 2026E and 2027F earnings expectations for Pak Elektron (PAEL) by 44% and 27% to Rs4.7 and Rs6.2 per share from earlier expectations of Rs6.8 and 7.9 per share, respectively on the back of (1) lower than expected gross profit (GP) margins expectations for 2026 and 2027 and lower sales of power segment, and (2) likely increase in finance cost post increase in interest rates in last MPC policy.</li><li>Resultantly, we also revised down our Jun 2027 target price for PAEL to Rs55/share (earlier Rs81/share), albeit maintaining BUY stance on the company as it offers potential upside of 40%.</li><li>Gross margins assumptions revised down: We revised down our expectations of GP margins to 26.6% and 26% for 2026E and 2027F vs. earlier 28% for both, respectively.</li></ul>

We revise down our 2026E and 2027F earnings expectations for Pak Elektron (PAEL) by 44% and 27% to Rs4.7 and Rs6.2 per share from earlier expectations of Rs6.8 and 7.9 per share, respectively on the back of (1) lower than expected gross profit (GP) margins expectations for 2026 and 2027 and lower sales of power segment, and (2) likely increase in finance cost post increase in interest rates in last MPC policy.Resultantly, we also revised down our Jun 2027 target price for PAEL to Rs55/share (earlier Rs81/share), albeit maintaining BUY stance on the company as it offers potential upside of 40%.Gross margins assumptions revised down: We revised down our expectations of GP margins to 26.6% and 26% for 2026E and 2027F vs. earlier 28% for both, respectively.

Pak Elektron (PAEL): BUY Stance Maintained; Earnings Revised Down

<ul><li>Pak Elektron (PAEL) conducted its Corporate Briefing Session today where management discussed financial performance and future outlook.</li><li>For FY26, management expects appliances segment to grow ~25%. Within the segment, company believes split ACs are projected to see a growth of 33% YoY, followed by refrigerators at 25% and deep freezers at 6%. PAEL currently holds market shares of 17% in refrigerators, 7% in air conditioners, 5% in washing machines, and 33% in water dispensers.</li><li>The company’s dealer network also continues to expand, with 1,913 out of a total 2,600 dealers currently carrying PAEL products, translating into dealer penetration of around 74%.</li></ul>

Pak Elektron (PAEL) conducted its Corporate Briefing Session today where management discussed financial performance and future outlook.For FY26, management expects appliances segment to grow ~25%. Within the segment, company believes split ACs are projected to see a growth of 33% YoY, followed by refrigerators at 25% and deep freezers at 6%. PAEL currently holds market shares of 17% in refrigerators, 7% in air conditioners, 5% in washing machines, and 33% in water dispensers.The company’s dealer network also continues to expand, with 1,913 out of a total 2,600 dealers currently carrying PAEL products, translating into dealer penetration of around 74%.

Topline Flash Note: Pak Elektron (PAEL) – Corporate Briefing Key Takeaways

<ul><li>Pak Elektron Limited (PAEL) announced its 1Q2026 result wherein company posted earnings of Rs869mn (EPS of Rs0.94) up by 33% YoY and 10% QoQ.</li><li>The result came in below expectations due to higher-than-expected selling and distribution expenses.</li><li>Selling and distribution expenses in 1Q2026 increased by 56% YoY and 36% QoQ to Rs1,717mn.</li></ul>

Pak Elektron Limited (PAEL) announced its 1Q2026 result wherein company posted earnings of Rs869mn (EPS of Rs0.94) up by 33% YoY and 10% QoQ.The result came in below expectations due to higher-than-expected selling and distribution expenses.Selling and distribution expenses in 1Q2026 increased by 56% YoY and 36% QoQ to Rs1,717mn.

PAEL: 1Q2026 EPS at Rs0.94, Up by 33% YoY and 10% QoQ – Earnings Lower Than Expectations

<ul><li>Pak Elektron Limited (PAEL) announced its 4Q2025 result wherein company posted earnings of Rs795mn (EPS of Rs0.86) up by 58% YoY and 17% QoQ.</li><li>This took 2025 earnings to Rs3.85bn (EPS of RS4.16) up by 62% YoY.</li><li>Earnings rose in 4Q2025, mainly driven by higher net sales. Net sales increased by 42% YoY and 48% QoQ to Rs16.7bn, supported by growth in the appliances division, as per our channel checks.</li></ul>

Pak Elektron Limited (PAEL) announced its 4Q2025 result wherein company posted earnings of Rs795mn (EPS of Rs0.86) up by 58% YoY and 17% QoQ.This took 2025 earnings to Rs3.85bn (EPS of RS4.16) up by 62% YoY.Earnings rose in 4Q2025, mainly driven by higher net sales. Net sales increased by 42% YoY and 48% QoQ to Rs16.7bn, supported by growth in the appliances division, as per our channel checks.

PAEL: 2025 EPS at Rs4.16, Up By 62% YoY – Earnings Lower Than Expectations

Pakistan

Pak Elektron Limited manufactures and sells electrical capital goods and domestic appliances primarily in Pakistan. It operates in two divisions, Power and Appliances. The Power division manufactures and distributes transformers, switchgears, energy meters, and power transformers; constructs grid stations; and provides electrification works. The Appliances division manufactures, assembles, and distributes refrigerators, deep freezers, air conditioners, microwave ovens, washing machines, water dispensers, and other home appliances. The company also exports its products to Qatar, Afghanistan, Zimbabwe, Yemen, Greece, Swaziland, Saudi Arabia, Tanzania, Kazakhstan, Bangladesh, Nepal, and Kenya. Pak Elektron Limited was founded in 1956 and is based in Lahore, Pakistan.

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Pak Elektron Limited (Pael) (PAEL PA)

Pak Elektron (PAEL): 2Q2026 EPS at Rs1.89, Up by 2% YoY and 2x QoQ – Earnings Slightly Higher Than Expectations

Pak Elektron Limited (PAEL) announced its 2Q2026 result wherein company posted earnings of Rs1,749mn (EPS of Rs1.89) up by 2% YoY and 2x QoQ. The...

Topline Securities

Pak Elektron (PAEL): BUY Stance Maintained; Earnings Revised Down

We revise down our 2026E and 2027F earnings expectations for Pak Elektron (PAEL) by 44% and 27% to Rs4.7 and Rs6.2 per share from earlier...

Topline Securities

Topline Flash Note: Pak Elektron (PAEL) – Corporate Briefing Key Takeaways

Pak Elektron (PAEL) conducted its Corporate Briefing Session today where management discussed financial performance and future outlook. For FY26,...

Topline Securities

PAEL: 1Q2026 EPS at Rs0.94, Up by 33% YoY and 10% QoQ – Earnings Lower Than Expectations

Pak Elektron Limited (PAEL) announced its 1Q2026 result wherein company posted earnings of Rs869mn (EPS of Rs0.94) up by 33% YoY and 10% QoQ. The...

Topline Securities

PAEL: 2025 EPS at Rs4.16, Up By 62% YoY – Earnings Lower Than Expectations

Pak Elektron Limited (PAEL) announced its 4Q2025 result wherein company posted earnings of Rs795mn (EPS of Rs0.86) up by 58% YoY and 17% QoQ. This...

Topline Securities

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