Pakistani (KSE) Chemicals Industry Analysis
- 7D-3.4%
- 3M-5.3%
- 1Y3.7%
- YTD-0.6%
Over the last 7 days, the Chemicals industry has dropped 3.4%, driven by pullbacks in Engro and Fauji Fertilizer of 4.3% and 5.1%, respectively. Meanwhile, Gatron (Industries) actually outperformed within the industry, gaining 31% in the last week. This takes the industry's 12 month performance to a gain of 3.7%.
Industry Valuation and Performance
Has the Pakistani Chemicals Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Mon, 29 Nov 2021 | PK₨794.3b | PK₨1.4t | PK₨169.0b | 5.6x |
| Wed, 27 Oct 2021 | PK₨804.0b | PK₨1.4t | PK₨157.5b | 6.9x |
| Fri, 24 Sep 2021 | PK₨791.4b | PK₨1.3t | PK₨161.5b | 6.1x |
| Sun, 22 Aug 2021 | PK₨840.1b | PK₨1.3t | PK₨160.1b | 7.4x |
| Fri, 09 Jul 2021 | PK₨820.1b | PK₨1.3t | PK₨160.1b | 7.6x |
| Thu, 01 Apr 2021 | PK₨790.6b | PK₨1.3t | PK₨146.8b | 7.9x |
| Sun, 03 Jan 2021 | PK₨784.7b | PK₨1.1t | PK₨116.5b | 9.1x |
| Wed, 07 Oct 2020 | PK₨759.4b | PK₨1.2t | PK₨91.8b | 12.3x |
| Tue, 30 Jun 2020 | PK₨714.5b | PK₨1.1t | PK₨73.5b | 13.6x |
| Fri, 03 Apr 2020 | PK₨611.3b | PK₨1.1t | PK₨72.8b | 8.5x |
| Mon, 06 Jan 2020 | PK₨773.8b | PK₨1.1t | PK₨81.7b | 10.9x |
| Thu, 10 Oct 2019 | PK₨650.3b | PK₨1.1t | PK₨85.2b | 7x |
| Wed, 03 Jul 2019 | PK₨645.6b | PK₨1.0t | PK₨89.6b | 6.6x |
| Sat, 06 Apr 2019 | PK₨757.0b | PK₨991.3b | PK₨84.3b | 8.6x |
| Tue, 08 Jan 2019 | PK₨737.7b | PK₨964.0b | PK₨96.4b | 9.6x |
10.1x
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 9.3x. However, future earnings are expected to decline by 5.3% which could potentially cause the PE ratio to fall below its historical average.
Past Earnings Growth: The earnings for companies in the Chemicals industry have grown 22% per year over the last three years, and revenues for these companies have grown 16% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Pakistani Chemicals industry?
| Commodity Chemicals | -1.06% | |
| Fertilizers and Agricultural Chemicals | -3.53% | |
| Industrial Gases | -5.04% | |
| Diversified Chemicals | -7.26% | |
| Specialty Chemicals | -8.87% | |
Industry PE: Investors are most optimistic about the Industrial Gases industry even though it's trading below its 3-year average PE ratio of 21.8x. It looks like they are confident that earnings will grow faster in the future than they have historically. Meanwhile, investors are most pessimistic about the Fertilizers and Agricultural Chemicals industry, which is trading below its 3-year average of 6.1x.
Forecasted Growth: Despite it being negative, analysts are least pessimistic on the Diversified Chemicals industry since they expect its earnings to decline by only 3.8% per year over the next 5 years, which isn't as bad as the other industries. However, this is a reversal from its past annual earnings growth rate of 103% per year. Meanwhile, the Commodity Chemicals industry is expected to see its earnings decline by 8.3% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| GATI Gatron (Industries) | 30.9%+PK₨5.2b | -7.1% | PE7.5x | |
| FATIMA Fatima Fertilizer | 2.0%+PK₨1.4b | 20.0% | PE4x | |
| SITC Sitara Chemical Industries | 0.4%+PK₨26.8m | -14.5% | PE5.5x | |
| RUPL Rupali Polyester | 2.1%+PK₨25.6m | 85.9% | PE2.1x |