Hascol Petroleum: Organic growth is already priced in; Sell - By IMS Research

<p></p><ul><li><span style="font-size:medium;">We reinstate coverage on HASCOL &ndash; the 3rd largest OMC in Pakistan &ndash; with a Sell stance and TP of PkR316/sh (downside: 12%). HASCOL enjoys unmatched ability to sustain sales growth momentum and management track record is excellent; however, changing industry dynamics will eventually decelerate growth, which itself will become more expensive to sustain, in our view.</span></li></ul><ul><li><span style="font-size:medium;">Four main factors that will slow down growth are (i) other OMCs will replicate HASCOL&rsquo;s storage advantage, (ii) it will potentially be competing with 21 OMCs who have recently obtained OMC license, (iii) chronically shrinking FO market, and (iv) a less diversified sales mix than peers.</span></li></ul><ul><li><span style="font-size:medium;">HASCOL&rsquo...