Pakistan Aluminum Beverage Cans Limited (PABC): ‘Buy’ Expansion and Devaluation to drive Growth – By AHCML Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We initiate a coverage on PABC, with a BUY stance on the script using a DCF based Dec-23 TP of PKR 63/sh, offering a potential upside of 59%. Further, expected dividend yield of 7.5%, takes total potential return to 66.5%. Stock is currently trading at CY22/CY23 forward P/E of 4.6x/2.96x, P/B 1.98x/1.30x and P/S 1.02x/0.84x.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">PABC is scaling and gaining efficiencies, the impact is visible in 9MCY22 as sales recorded to PKR10.85bn, up 89% YoY and Profitability to PKR 2.5bn, up 107% YoY</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">The company's long-standing ties with its current clients in domestic ma...