ENGRO
Engro HoldingsLAST · PKR
52W RANGE
Source: PSX, First Asia Securities Research. Data as of 22 Jun 2026, EOD.
- Market cap
- 336bn
- P/E (ttm)
- 6.0×
- EPS (ttm)
- 53.18
- Dividend yield
- 0.0%
- Return on equity
- 44.4%
- Beta
- 0.05
- Free float
- 55%
- 52W high
- 302.50
- 52W low
- 160.75
- 1D change
- +0.55%
- YTD return
- +16.0%
Diversified holding company spanning fertilizers, petrochemicals, telecom infrastructure, energy and foods.
FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD
Cheap, high-return — but you wait without a coupon
- 01
Buy, PKR 370 target: at 6.0× with a 44% ROE, Engro Holdings is cheap for the quality of its parts — fertilizer, petrochemicals, energy and telecom infrastructure.
- 02
The cyclical swing is petrochemicals: a polymer-margin recovery and the telecom-tower build-out drive the FY26 earnings.
- 03
The catch is income — the holdco currently pays no dividend, so the return is entirely re-rating and growth.
- 04
At ~6.4× our FY26E EPS the target is PKR 370; the discount to the parts is too wide for a 44% ROE.
| Metric | FY25A | FY26E | FY27E |
|---|---|---|---|
| Net profitPKR bn | 56.0 | 62.0 | 68.0 |
| EPSPKR | 53.1 | 58.4 | 64.2 |
| DPSPKR | 0.0 | 0.0 | 0.0 |
| P/E× | 6.0× | 5.5× | 5.0× |
| EPS growth% | — | +10.0% | +10.0% |
A = REPORTED · E = FAS ESTIMATE
Polymer trough deepens; discount persists.
4.7× stressed EPS
Cyclical recovery; partial re-rate.
6.4× FY26E
Value-unlock or payout initiation re-rates to NAV.
7.5× FY26E
Will the holdco discount close?
No dividend and complexity keep it cheap forever.
A 44% ROE at 6× is too cheap; a value-unlock or a payout initiation is the catalyst.
Capital mis-allocation into sub-scale ventures.
Is the petrochemical recovery durable?
Polymer margins are cyclical and roll over.
Domestic demand and import substitution cushion the trough; a real, if cyclical, recovery.
A sustained collapse in regional PVC-ethylene spreads.
No dividend — why own it?
Income investors have no reason to hold.
This is a total-return, re-rating story, not an income one; the cheapness is the case.
Earnings growth stalling with no payout to compensate.
| Assumption | Value | Basis |
|---|---|---|
| FY26E EPS | PKR 57.4 | FY25 base +10% on polymer and energy |
| Target multiple | ~6.4× FY26E | partial re-rate from 6.0× |
| Dividend | none | return is re-rating + growth |
| 12-month target | PKR 370 | ≈6.4 × 57.4, rounded |
- 01Petrochemical margin cycleWATCH · Regional PVC-ethylene spreads
- 02No dividend / holdco discountWATCH · NAV gap, payout policy
- 03Subsidiary dividend flowWATCH · Upstream payout from units
- 04FX / input costsWATCH · PKR/USD, feedstock prices
— GENERATED BY FIRST ASIA SECURITIES · NOT INVESTMENT ADVICE