PSMC posted a 2QCY22 EPS of PKR5.38, beating our expectation due to higher gross margin and other income
Gross margin declined by c.1.5ppt YoY, owing to elevated input costs, PKR depreciation and lagged of price hike impact
Sales are likely to contract in the coming quarters amid plant closure and administrative measures, in our view
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Valuation Methodology: We use multiple valuation methodologies in arriving at a Target Price including, but not limited to, Discounted Cash Flow (DCF), Dividend Discount Model (DDM) and relative multiples based valuations.
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