<p></p><ul><li><span style="font-size:medium;">We re-initiate our coverage on Fatima Fertilizer Limited (FATIMA) with a TP of
PKR39/sh, offering a total return of 10% on the last closing.</span></li></ul><ul><li><span style="font-size:medium;">The company is expected to post earnings of PKR9.1bn (EPS: PKR4.4), flattish YoY in
the outgoing year owing to 11%YoY growth in the topline.</span></li></ul><ul><li><span style="font-size:medium;">Despite offering the highest price discounts (PKR130/bag), the inventory glut is likely
to persist unless the government allows the export of urea to ease off the situation.</span></li></ul><ul><li><span style="font-size:medium;">Going forward, we expect better farmer income (cotton price up 13%YoY) to support
offtake levels in the coming year.
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