External broker reports(aggregated public sources), Topline Securities

Topline Securities

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External broker reports(aggregated public sources)

Equity Bottom-Up

Pak Elektron Limited (Pael) / Equity Bottom-Up

<ul><li>We reiterate our Buy stance on Pak Elektron (PAEL) with a Dec 2025 Target Price (TP) of Rs58/share, offering a potential upside of 38%.</li><li>We are revising up our earning estimates for 2025-2026 on the back of (1) better power division outlook amidst export of transformers to US and other countries, (2) volumetric recovery in appliances division, and (3) fall in interest rate to help both volumes and decline in finance cost. As a result of this, we revise up our 2025/2026 earnings by 34-44% to Rs5.9/7.0 per share from earlier expectations of Rs4.1/5.2 per share.</li><li>Better Power Division Outlook amidst onset of transformers exports: PAEL has recently started exporting power transformers to the USA and has received orders worth up to US$20mn (Rs5.6bn), with the annual potential to serve/execute US$50mn (Rs13.9bn) worth of orders per annum, as per our channel checks. These orders will be delivered next year in 2025 starting Mar 2025 quarter. We believe that higher duties on Chinese imports and higher lead time from Mexico gives edge to PAEL to increase its footprints in American Market.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

We reiterate our Buy stance on Pak Elektron (PAEL) with a Dec 2025 Target Price (TP) of Rs58/share, offering a potential upside of 38%.We are revising up our earning estimates for 2025-2026 on the back of (1) better power division outlook amidst export of transformers to US and other countries, (2) volumetric recovery in appliances division, and (3) fall in interest rate to help both volumes and decline in finance cost. As a result of this, we revise up our 2025/2026 earnings by 34-44% to Rs5.9/7.0 per share from earlier expectations of Rs4.1/5.2 per share.Better Power Division Outlook amidst onset of transformers exports: PAEL has recently started exporting power transformers to the USA and has received orders worth up to US$20mn (Rs5.6bn), with the annual potential to serve/execute US$50mn (Rs13.9bn) worth of orders per annum, as per our channel checks. These orders will be delivered next year in 2025 starting Mar 2025 quarter. We believe that higher duties on Chinese imports and higher lead time from Mexico gives edge to PAEL to increase its footprints in American Market.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pak Elektron Limited (PAEL) - Better Sales, Margins & Deleveraging to Drive Earnings