Indus Motor (KASE:INDU) - Share price, News & Analysis

INDU fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	1/6
Past Performance	4/6
Financial Health	5/6
Dividends	4/6

INDU Stock Overview

Indus Motor Company Limited manufactures and markets Toyota brand vehicles in Pakistan.

Rewards

PE ratio (5.2x) is below the PK market (5.6x)

Earnings grew by 131.5% over the past year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Indus Motor Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Indus Motor
Historical stock prices
Current Share Price	PK₨1,308.20
52 Week High	PK₨1,535.00
52 Week Low	PK₨1,051.00
Beta	1.08
1 Month Change	-3.81%
3 Month Change	-6.55%
1 Year Change	16.23%
3 Year Change	10.50%
5 Year Change	-34.56%
Change since IPO	3,445.26%

Shareholder Returns

	INDU	PK Auto	PK Market
7D	0.5%	-1.5%	-1.8%
1Y	16.2%	-13.3%	-12.4%

Return vs Industry: INDU exceeded the PK Auto industry which returned -13.3% over the past year.

Return vs Market: INDU exceeded the PK Market which returned -12.4% over the past year.

Price Volatility

Is INDU's price volatile compared to industry and market?
INDU volatility
INDU Average Weekly Movement	3.8%
Auto Industry Average Movement	5.7%
Market Average Movement	5.7%
10% most volatile stocks in PK Market	8.9%
10% least volatile stocks in PK Market	3.5%

Stable Share Price: INDU is less volatile than 75% of PK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: INDU's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1989	2,943	Ali Asghar Jamali	https://www.toyota-indus.com

Indus Motor Company Limited manufactures and markets Toyota brand vehicles in Pakistan. The company offers passenger cars under the Corolla and Yaris brands; light commercial vehicles under the Hilux brand; and sports utility vehicles under the Fortuner brand. It also distributes the Toyota and Daihatsu brand vehicles.

Indus Motor Fundamentals Summary

How do Indus Motor's earnings and revenue compare to its market cap?
INDU fundamental statistics
Market Cap	PK₨102.82b
Earnings (TTM)	PK₨19.71b
Revenue (TTM)	PK₨251.41b

5.2x

P/E Ratio

0.4x

P/S Ratio

Is INDU overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
INDU income statement (TTM)
Revenue	PK₨251.41b
Cost of Revenue	PK₨228.06b
Gross Profit	PK₨23.35b
Other Expenses	PK₨3.64b
Earnings	PK₨19.71b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	250.71
Gross Margin	9.29%
Net Profit Margin	7.84%
Debt/Equity Ratio	1.2%

How did INDU perform over the long term?

See historical performance and comparison

Dividends

7.9%

Current Dividend Yield

51%

Payout Ratio

Valuation

Is Indus Motor undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

5.22x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: INDU (PKR1308.2) is trading above our estimate of fair value (PKR668.87)

Significantly Below Fair Value: INDU is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: INDU is good value based on its PE Ratio (5.2x) compared to the PK Auto industry average (8.1x).

PE vs Market: INDU is good value based on its PE Ratio (5.2x) compared to the PK market (5.6x).

Price to Earnings Growth Ratio

PEG Ratio: INDU is poor value based on its PEG Ratio (12.3x)

Price to Book Ratio

PB vs Industry: INDU is overvalued based on its PB Ratio (1.9x) compared to the PK Auto industry average (1.1x).

Future Growth

How is Indus Motor forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

0.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: INDU's forecast earnings growth (0.4% per year) is below the savings rate (10.2%).

Earnings vs Market: INDU's earnings (0.4% per year) are forecast to grow slower than the PK market (3.1% per year).

High Growth Earnings: INDU's earnings are forecast to grow, but not significantly.

Revenue vs Market: INDU's revenue (1.3% per year) is forecast to grow slower than the PK market (3.3% per year).

High Growth Revenue: INDU's revenue (1.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: INDU's Return on Equity is forecast to be high in 3 years time (29.2%)

Past Performance

How has Indus Motor performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-1.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: INDU has a large one-off gain of PKR4.7B impacting its March 31 2022 financial results.

Growing Profit Margin: INDU's current net profit margins (7.8%) are higher than last year (6%).

Past Earnings Growth Analysis

Earnings Trend: INDU's earnings have declined by 1.5% per year over the past 5 years.

Accelerating Growth: INDU's earnings growth over the past year (131.5%) exceeds its 5-year average (-1.5% per year).

Earnings vs Industry: INDU earnings growth over the past year (131.5%) exceeded the Auto industry 26.9%.

Return on Equity

High ROE: INDU's Return on Equity (35.5%) is considered high.

Financial Health

How is Indus Motor's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: INDU's short term assets (PKR169.5B) exceed its short term liabilities (PKR138.9B).

Long Term Liabilities: INDU's short term assets (PKR169.5B) exceed its long term liabilities (PKR381.9M).

Debt to Equity History and Analysis

Debt Level: INDU has more cash than its total debt.

Reducing Debt: Insufficient data to determine if INDU's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: INDU's debt is well covered by operating cash flow (10453.7%).

Interest Coverage: INDU earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Indus Motor current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

7.91%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: INDU's dividend (7.91%) is higher than the bottom 25% of dividend payers in the PK market (3.72%).

High Dividend: INDU's dividend (7.91%) is low compared to the top 25% of dividend payers in the PK market (11.25%).

Stability and Growth of Payments

Stable Dividend: INDU's dividend payments have been volatile in the past 10 years.

Growing Dividend: INDU's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (50.7%), INDU's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (11.7%), INDU's dividend payments are thoroughly covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Automobiles industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure

CEO

Ali Asghar Jamali

5.33yrs

Tenure

Mr. Ali Asghar Abbas Jamali has been the Chief Executive Officer of Indus Motor Company Limited since January 1, 2017. Mr. Jamali served as the Chief Operating Officer at Indus Motor Company Limited until...

Leadership Team

Experienced Management: INDU's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: INDU's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30