Key Takeaways:
• Cherry Tiggo Cross release of CBU expected in 3QFY25 followed by CKD.
• Truck sales are picking up with more growth anticipated.
Ghandhara Automobiles Limited reported earnings per share of PKR 6.40 in FY24 against earnings per share of PKR 3.04 in FY23 an increase of 111%. Total revenue in FY24 reached PKR 9.4 Bn against PKR 13.1 Bn in FY23, a decrease of 28%. The company saw its gross margin surge from 9% in FY23 to 12% in FY24.
The management informed that they are currently awaiting approval from Cherry R&D with regards to a right-hand drive variant of the Cherry Tiggo Cross. Release is expected in 3QFY25. It is interesting to note here that the RHD variant was recently launched in South Africa indicating that the launch is close.
Management apprised that in the heavy trucks segment they are experiencing strong sales for their dump truck and they boast the only vehicle of this kind in the segment. They believe sales are strong due to superior fuel economy. Going forward, the management expects their Cherry sales numbers to be reported to PAMA. They also expect truck sales to continue improving as economic stabilization continues and interest rates come down.
Important Disclosures
Disclaimer: This report has been prepared by Chase Securities Pakistan (Private) Limited and is provided for information purposes only. Under no circumstances, this is to be used or considered as an offer to sell or solicitation or any offer to buy. While reasonable care has been taken to ensure that the information contained in this report is not untrue or misleading at the time of its publication, Chase Securities makes no representation as to its accuracy or completeness and it should not be relied upon as such. From time to time, Chase Securities and/or any of its officers or directors may, as permitted by applicable laws, have a position, or otherwise be interested in any transaction, in any securities directly or indirectly subject of this report Chase Securities as a firm may have business relationships, including investment banking relationships with the companies referred to in this report This report is provided only for the information of professional advisers who are expected to make their own investment decisions without undue reliance on this report and Chase Securities accepts no responsibility whatsoever for any direct or indirect consequential loss arising from any use of this report or its contents At the same time, it should be noted that investments in capital markets are also subject to market risks This report may not be reproduced, distributed or published by any recipient for any purpose.
