External broker reports(aggregated public sources), Topline Securities

Topline Securities

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External broker reports(aggregated public sources)

Equity Bottom-Up

Sazgar Engineering Works Limited / Equity Bottom-Up

Sazgar Engineering Works Limited (SAZEW PK)

<ul><li>Pakistan's 3 wheeler (rikshaw) turned 4 wheeler assembler, Sazgar Engineering (SAZEW) is set to witness 168% earnings CAGR during FY24-26 owing to increased demand in both Petrol and Hybrid versions of the Chinese Haval brand.</li><li>Our Discounted Cash Flows (DCF) based Jun 2025 target price for SAZEW is at Rs1,613/share, providing total return of 98% including dividend yield of 8%.</li><li>Our liking for this stock emanates from (1) rising four wheelers sales to a monthly average of 700+ units compared to last 6 months average of 541 units, (2) Superior gross margins of +28% compared to other players margins of 9-11% (FY23) operating under the Auto Policy 2016-2021, (3) likely commencement of the local assembly of new models currently launched under testing phase, Tank and Ora, and (4) attractive valuation with FY25E PE of 3.1x, compared to sector average forward PE of 9.8x.</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>

Pakistan's 3 wheeler (rikshaw) turned 4 wheeler assembler, Sazgar Engineering (SAZEW) is set to witness 168% earnings CAGR during FY24-26 owing to increased demand in both Petrol and Hybrid versions of the Chinese Haval brand.Our Discounted Cash Flows (DCF) based Jun 2025 target price for SAZEW is at Rs1,613/share, providing total return of 98% including dividend yield of 8%.Our liking for this stock emanates from (1) rising four wheelers sales to a monthly average of 700+ units compared to last 6 months average of 541 units, (2) Superior gross margins of +28% compared to other players margins of 9-11% (FY23) operating under the Auto Policy 2016-2021, (3) likely commencement of the local assembly of new models currently launched under testing phase, Tank and Ora, and (4) attractive valuation with FY25E PE of 3.1x, compared to sector average forward PE of 9.8x.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.

SAZEW Engineering Works (SAZEW): "Buy"; Rising sales to drive bottom line; more models in pipeline