INDU
Indus Motor CompanyLAST · PKR
52W RANGE
Source: PSX, First Asia Securities Research. Data as of 22 Jun 2026, EOD.
- Market cap
- 160bn
- P/E (ttm)
- 6.3×
- EPS (ttm)
- 328.92
- Dividend yield
- 8.6%
- Return on equity
- 32.5%
- Beta
- 0.30
- Free float
- 25%
- 52W high
- 2,430.00
- 52W low
- 1,695.00
- 1D change
- −0.29%
- YTD return
- +5.4%
Toyota franchise assembler; market leader in passenger cars and light commercial vehicles.
FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD
Cheap, cash-rich Toyota — geared to the rate cut
- 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.
- 02
As the policy rate falls, financing revives — and the Toyota market leader in cars and LCVs has the operating leverage.
- 03
Localisation and a defensive beta steady earnings through the cycle.
- 04
On a 12% FY26E earnings recovery at ~6.8× the target is PKR 2,500, with the yield on top.
| Metric | FY25A | FY26E | FY27E |
|---|---|---|---|
| Net profitPKR bn | 25.0 | 28.0 | 31.0 |
| EPSPKR | 326.7 | 365.9 | 409.8 |
| DPSPKR | 176.0 | 190.1 | 205.3 |
| P/E× | 6.3× | 5.6× | 5.0× |
| EPS growth% | — | +12.0% | +12.0% |
A = REPORTED · E = FAS ESTIMATE
Recovery stalls; PKR re-inflates costs.
~5× stressed EPS
Financing revives volumes; margins expand.
~6.8× FY26E
Sharp volume rebound; operating leverage.
~7.9× FY26E
Is the auto recovery real?
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.
Can margins recover with imported inputs?
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.
Is the leadership position secure?
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.
| Assumption | Value | Basis |
|---|---|---|
| FY26E EPS | PKR 368.4 | FY25 base +12% on volume |
| Target multiple | ~6.8× FY26E | modest re-rate from 6.3× |
| Balance sheet | net cash | supports the 8.6% yield |
| 12-month target | PKR 2,500 | ≈6.8 × 368.4, rounded |
- 01Demand / financingWATCH · Auto-financing volumes, rates
- 02PKR & input costsWATCH · PKR/USD, CKD prices
- 03CompetitionWATCH · Market-share trend
- 04Cyclical downturnWATCH · PAMA monthly volumes
— GENERATED BY FIRST ASIA SECURITIES · NOT INVESTMENT ADVICE
| Symbol | Last | Chg % | P/E | M. Cap | 1Y |
|---|---|---|---|---|---|
| INDUIndus Motor Company— THIS PAGE | 2,058.06 | −0.29% | 6.3× | 160bn | |
| MTLMillat Tractors | 312.38 | 0.00% | 16.8× | 125bn |
Source: PSX, First Asia Securities Research. Data as of 22 Jun 2026, EOD.