EFERT
Engro FertilizersLAST · PKR
52W RANGE
Source: PSX, First Asia Securities Research. Data as of 22 Jun 2026, EOD.
- Market cap
- 266bn
- P/E (ttm)
- 11.6×
- EPS (ttm)
- 17.27
- Dividend yield
- 7.5%
- Return on equity
- 55.9%
- Beta
- 0.36
- Free float
- 40%
- 52W high
- 263.30
- 52W low
- 176.00
- 1D change
- −0.12%
- YTD return
- −9.7%
Engro group's fertilizer arm; concessionary-gas cost advantage and consistently among the market's highest dividend payers.
FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD
A 56% ROE — but priced at twelve times
- 01
Neutral, PKR 215 target: EFERT throws off a stunning 56% ROE and a 7.5% yield on a concessionary-gas edge — but at 11.6× the quality is in the price.
- 02
The concessionary-gas advantage underpins margins and one of the market's most reliable payouts.
- 03
The ceiling is policy — feed-gas pricing and subsidy decisions sit between margin and shareholder.
- 04
At ~11.9× our FY26E EPS the target is PKR 215; single-digit price upside, with the yield carrying the total return.
| Metric | FY25A | FY26E | FY27E |
|---|---|---|---|
| Net profitPKR bn | 23.0 | 24.0 | 25.0 |
| EPSPKR | 17.2 | 17.9 | 18.8 |
| DPSPKR | 15.0 | 15.6 | 16.2 |
| P/E× | 11.6× | 11.2× | 10.6× |
| EPS growth% | — | +4.0% | +5.0% |
A = REPORTED · E = FAS ESTIMATE
Gas-cost shock; payout trimmed.
9.2× stressed EPS
Steady volumes; yield carries it.
11.9× FY26E
Gas-pricing clarity sustains the premium.
13.0× FY26E
Is a 56% ROE sustainable?
Concessionary gas flatters returns; normalisation looms.
The edge has persisted, but the 11.6× multiple already credits it — limited re-rating left.
A move to uniform gas pricing across the sector.
Yield floor or trap?
A 7.5% yield is a solid floor.
Well-covered and a genuine support, but not a catalyst.
A payout cut on a gas-cost shock.
Demand resilience?
Subsidy normalisation hits off-take.
Urea demand is inelastic; EFERT holds share.
Sustained double-digit off-take decline.
| Assumption | Value | Basis |
|---|---|---|
| FY26E EPS | PKR 18.0 | FY25 base +4% |
| Target multiple | ~11.9× FY26E | in line with 11.6× |
| Total return | ~16% | ~8% price + 7.5% yield |
| 12-month target | PKR 215 | ≈11.9 × 18.0, rounded |
- 01Feed-gas pricing / subsidyWATCH · OGRA notifications
- 02Urea demandWATCH · NFDC off-take
- 03Payout sustainabilityWATCH · Cash flow, payout ratio
- 04FX / input costWATCH · Gas tariff, PKR/USD
— GENERATED BY FIRST ASIA SECURITIES · NOT INVESTMENT ADVICE
| Symbol | Last | Chg % | P/E | M. Cap | 1Y |
|---|---|---|---|---|---|
| FFCFauji Fertilizer Company | 557.94 | −0.50% | 9.3× | 800bn | |
| EFERTEngro Fertilizers— THIS PAGE | 199.89 | −0.12% | 11.6× | 266bn |
Source: PSX, First Asia Securities Research. Data as of 22 Jun 2026, EOD.