Earnings Report /
Pakistan

Gul Ahmed Textile Mills Ltd: 1QFY22 review – Earnings miss on lower-than-expected gross margins

  • GATM posted a consolidated EPS of PKR2.27 for 1QFY22, lower than our expectations amid lower-than-expected gross margins

  • GMs declined by a modest 0.3ppt qoq to c.20% likely due to attrition in Home Textile segment

  • GATM is one of our top picks in the IMS Universe; we have a Buy stance with a June’22 TP of PKR63/sh

Abdul Ghani Mianoor
Intermarket Securities
29 October 2021