Nishat Chunian Limited: Capacity expansion and coal power plant to drive earnings - By AAH Research

<p></p><ul><li><span style="font-size:medium;">We initiate coverage on Nishat Chunian Limited (NCL) with a BUY recommendation based on a Jun-17 target price (TP) of PKR 83.1/share, offering an upside of 37.5% along with dividend yield of 5.9%.</span></li></ul><ul><li><span style="font-size:medium;">Initiation of coal based captive power plant will result in significant cost savings of around PKR 4/KWH and will result in an EPS contribution of PKR 2.0/2.1/2.1 in FY18/19/20.</span></li></ul><ul><li><span style="font-size:medium;">Expansion in weaving and home textile division is likely to increase capacity by 3% and 15% respectively. It is likely to help EPS grow at CAGR of 13.2% during FY17-19.</span></li></ul>