Earnings Report /
Pakistan

Nishat Chunian: 1QFY22 review – Lower-than-expected gross margins lead to earnings miss

  • NCL posted an EPS of PKR9.23 in 1Q, lower than our estimate of PKR10.85, amid sharp decline in GMs

  • GMs declined by a c.5% qoq on account of lower Spinning segment margins, due to moderating inventory gains, in our view

  • We have Buy stance on NCL with a June 2022 TP of PKR70/sh amid robust order flows

Abdul Ghani Mianoor
Intermarket Securities
29 October 2021