PSMC: Orange is the new lifeline – By Shajar Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We initiate our coverage on Pak Suzuki Motors Company (PSMC) with an Underweight stance arising from our DCF based Dec&rsquo;17 TP of PkR735/sh providing a downside of 15% from the last closing price.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">In 1QCY17 PSMC reported an EPS of PkR15.88, a growth of 38%YoY/45%QoQ on the back of 80%YoY/20%QoQ rise in Wagon-R sales volumes. The company exhibited volumetric growth of 8.5%YoY to 32,811 units vs. 30,233 units in CPLY</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We foresee the company to report volume accretion of 22% by 2021 in the motorcar segment bolstered by positive macroeconomic factors thus mounting its capacity uti...