FIRST ASIA SECURITIES
PakistanSri LankaPREV
EquitiesFixed Income
DATA AS OF 13 JUL 2026 · EOD

INDU

Indus Motor Company
AUTOMOBILES

LAST · PKR

1,970.16
−43.43 ▼ −2.16%
P/E 6.3× · YIELD 8.6% · ROE 32.5%

52W RANGE

1,671.232,155.74
62% OF RANGE · YTD +0.9%
01 / INDU — 1 YearAS OF 13 JUL 2026 · EOD
PERIOD 1Y · 250 SESSIONS▲
The Call
BUY+27%
2,500.00PKR · 12-MO
~6.8× FY26E

Financing revives volumes; margins expand.

Risks to our view
02 /

FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD

Cheap, cash-rich Toyota — geared to the rate cut

  1. 01

    Buy, PKR 2,500 target: at 6.3× with a 32% ROE, an 8.6% yield and net cash, INDU is cheap quality leveraged to the auto-financing recovery.

  2. 02

    As the policy rate falls, financing revives — and the Toyota market leader in cars and LCVs has the operating leverage.

  3. 03

    Localisation and a defensive beta steady earnings through the cycle.

  4. 04

    On a 12% FY26E earnings recovery at ~6.8× the target is PKR 2,500, with the yield on top.

Where we differ from the street
Street viewOur viewWe change our mind if
Affordability is stretched; volumes stay low.Falling financing costs and pent-up demand drive a cyclical rebound; INDU has the leverage and the balance sheet.Rate cuts failing to revive auto-financing volumes.
CKD costs and FX squeeze margins.Localisation and pricing power, plus volume leverage, expand margins as units rise.A PKR slump re-inflating input costs.
New entrants erode Toyota's share.Brand, dealer network and resale value defend share; entrants compete at the margins.Sustained share loss to new assemblers.

— FIRST ASIA SECURITIES RESEARCH · NOT INVESTMENT ADVICE