Gul Ahmed Textile Mills Ltd

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GATM has reported consolidated NPAT of PKR0.8bn (EPS: PKR1.35) for 2QFY23, down 65% YoY and 38% QoQ. GMs are down 11ppt YoY to 19.2% in 2QFY23, mainly due to higher cotton and fuel & power prices. The company has reported other income of PKR860mn, up...

GATM reported consolidated EPS of PKR2.19 in 1QFY23, missing our EPS estimate of PKR4.81. GMs declined by 2.8ppt/2.7ppt YoY/QoQ to 17.7%, likely due to lower Retail segment contribution. We have a Jun’23 TP of PKR35/sh on GATM.

Despite the sharp downward revision in our TPs for the IMS Textile Universe, we remain Overweight on the sector. Global and local macroeconomic uncertainties have led us to further prune our growth assumptions, from our last revision. We reiterate ou...

Textile exports in Sep'22 clocked in at USD1.5bn, up a mere 3% YoY (down 3% MoM). Growth in exports on a YoY basis is largely due to the Knitwear and Towels segments. We remain Overweight on the sector with a preference for ILP and GATM.

We expect the IMS Textile Universe to post combined core net profits of PKR9.4bn in 1QFY23, flat compared to SPLY. ILP and GATM are expected to lead our Textile cluster, attributed to robust revenue growth in the Value-added segments. We continue to....

Latest news articles suggest that the govt. is proposing to discontinue the electricity tariff incentives PKR43.45/unit. NML and KTML are likely to be impacted the most by this proposal. ILP is likely to be relatively shielded, in our view. We contin...