PakStox Outlook

NML is trading at a low P/E ratio below 4. And its price to book is at absurd level. Its book value per share is around four times of its market price.  In addition to core earnings from its vertically integrated textile operations, Nishat Mills also benefits from substantial investment income generated by its portfolio of listed and unlisted securities. One of its most notable holdings is DG Khan Cement (DGKC), in which NML holds over 31% of shares. The resurgence in cement demand and rising profitability in the sector are expected to boost DGKC's market price, increasing the value of NML's investment portfolio. Furthermore, NML has a low weighting in major PSX indices. It has a small weight in the KSE100 Index and is not currently included in the KSE30. However, it has recently been added to the KMI30 index, that would be effective from June 14, 2024. That should boost the stock’s demand for inclusion in shariah compliant portfolios. NML has underperformed the market rally. C...

NML | Nishat Mills Limited Earning Release Q3-Mar 2024 For the quarter ending March 2024; NML reported a loss after tax of Rs. 285.8 million, compared to PAT of Rs. 3,300 million last year. The loss per share came out at Rs. 0.81 for the quarter. Last quarter EPS was Rs. 9.4. NML did not announce any cash dividends along with the results announcement. Note that over the course of the last one year, NML has distributed a total of Rs. 5 per share as cash dividends. On a 9-month basis, NML announced a PAT of Rs. 5,348 million, compared to a PAT of Rs. 11,136 million in the same period last year. To provide historical context to the earnings, note that on a twelve-month trailing basis, NML has recorded a profit after tax of Rs. 6,378 million, compared to a profit after tax of Rs. 9,964 million last year, registering a decline of 52%. Analysis of Profit & Loss To better comprehend changes in profit and loss in this quarter over last year, note that, > the revenue increased by 16.7% ...