Earnings Report /
Pakistan

Mughal Iron & Steel Industries: 4QFY21 Result Review: Lower-than-expected margins led to earnings miss

  • MUGHAL announced a 4QFY21 EPS of PKR3.15, lower than our expectation, along with a 15% bonus share issue

  • The deviation stemmed from lower-than-expected GMs of 12.5% (down c.9ppt qoq) amid normalizing of inventory gains

  • We have a Buy rating on MUGHAL with a TP of PKR142/sh on account of strong demand outlook in the construction sector

Abdul Ghani Mianoor
Intermarket Securities
17 September 2021