<p><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We reinitiate coverage on Nishat Mills Limited (NML) with a
Jun'17TP of PkR150/sh (Portfolio value contributes 86.4%), signifying an upside
of 18.2% from current levels. We highlight that the stock is currently trading close
to its current portfolio value (PkR126.7/sh after applying 30% conglomerate
discount) while the company's core business value remains ignored.</span></p><p><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">As part of the strategy to expand into value-added sector,
the company doubled its garment plant capacity to 12mn units, operational
Jul'16. The management expects capacity utilization to reach to 60% by CY16 and
80% going forward. NML earns a 5y average GM of 17% in the garment segment
compared to 12% in Spinn...
