Thal Limited (THALL): Share price yet to reflect earnings growth emanating from SECMC – By BMA Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We revise our earnings estimates for THALL by&nbsp;-5%/+43%/+36% over FY19/20/21 to PKR40.8/72.6/82.3, incorporating (i) reduction in earnings expectation of INDU and (ii) earnings impact of SECMC. Accordingly, we arrive our new SoTP based TP of PKR607/sh. </span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">THALL&rsquo;s share price has underperformed significantly in the past 6 months (rel. 14%) due to concerns on volumes of engineering segment on the back of adverse regulatory changes in recent budget.&nbsp;&nbsp; </span>&nbsp;</li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">While we acknowledge pressure on earnings, the market seems to have completely discounted THALL&rsquo;s foray...