Equity Analysis /

General Tyre and Rubber Company: GENERAL TYRE & RUBBER CO: Growth triggers awaited; initiate with Neutral

    Tellimer Research
    6 March 2018
    Published byTellimer Research
    We initiate coverage on GTYR, the largest tyre manufacturer in Pakistan, with a TP of PRs210/sh and a Neutral rating. Penetration in the replacement market and impetus from the truck segment (sponsors own GHNI and GHNL) underpin our 3yr sales CAGR of 15%. However, this is balanced by premium valuations and risk of incumbent OEMs shifting to imported tyres going forward.