August 16, 2024 (MLN): Sazgar Engineering Works Limited (SAZEW), the blue-chip pick of the Pakistan Stock Exchange (PSX) has been in the limelight for quite a prolonged period. Let's dig into the various developments that it went through which sent its price soaring to the clouds and made it a favorite among investors.
Just a year ago, the company’s stock traded at Rs76.32, and as of yesterday, its price has spiked to Rs1,085.39, booking an unbelievable and surprising return of 1,322.16%.
This robust boost earned it the third rank as the best-performing stock of the all-share index in the fiscal year 2024 (FY24), delivering a gain of 1,589%.
One aspect of its remarkable journey is the strong bullish rally that the PSX joyed after Pakistan’s agreement with the International Monetary Fund (IMF).
On the other side, there is a reflection of significant progress made in boosting sales, launching new models and upgrading existing ones.
The company kicked off 2024 with a major success as it obtained its first license from the government to manufacture electric rickshaws.
This marked the formal commencement of the electric rickshaw industry in Punjab by the hands of the premier CNG 4 Stroke Auto Rickshaw (3 Wheelers) and Automotive Wheel Rims manufacturer.
Following this, SAZEW managed to secure three ISO certificates for its 4-wheeler project, setting a benchmark for elevated quality standards.
To expand its presence in the four-wheeler section, SAZEW announced the potential acquisition of approximately 110 kanals of land valued at Rs847 million, located adjacent to its current facilities.
If we shift our focus to vehicle sales, it is worth noting that January marked another milestone for the company as it recorded the highest-ever monthly sales of both three-wheelers and four-wheelers.
To assess SAZEW’s profitability, it is evident that a positive response in sales enabled the company to book a substantial profit of Rs4.45 billion, compared to the meager bottom line of Rs523.75m earned in the auto-sector slump period (9MFY23).
As per the management, their customers are less sensitive to changes in price range since they operate solely in SUVs.
Later on in February, SAZEW, while further expanding its footprint in Pakistan's automotive sector, declared the launch of its first-ever Electric Vehicle (EV) car.
The EV model, named ORA 03 by Great Wall Motor (GWM) of China featured a 47.78 kWh lithium iron phosphate battery, providing a range of 310-400 kilometers and diversifying the range of vehicles that the company offers.
Another accomplishment for the company was the commencement of pre-booking of the newly assembled Hybrid Electric Vehicle (HEV) under the brand "HAVAL JOLION HEV" in April, which is currently garnering interest in the market.
Further diversifying its range of vehicles, SAZEW recently declared that it is planning to launch a new imported Completely Built-in Unit (CBU) "ORA-07 EV" Electric Vehicle within a couple of days.
With the booking of these vehicles commencing soon, the scrip is poised to become more profitable and investor-friendly.
Notably, these accomplishments earned the company a spot in the Morgan Stanley Capital International (MSCI) Frontier Market (FM) index, joining just 21 other Pakistani stocks.
As per a report by a well-renowned brokerage firm, SAZEW is poised for more substantial growth with its share price expected to reach Rs1,613 by the end of June 2025.
With such a promising trajectory, the outlook of the stock appears bright as these initiatives are expected to further support its earnings, and the company looks forward to expanding and solidifying its presence in the sector.
Copyright Mettis Link News
Posted on: 2024-08-16T12:07:00+05:00
