Considering robust Corolla sales, launch of Vigo champ, recent slowdown in PKR-Yen depreciation and expected price increases, we revise our TP for Indus upwards
Corolla sales will continue to remain upbeat (~50k sales units in FY13) on the basis of good agricultural output and subsequently increased farmer income
Cuore discontinued; however,Toyota’s new product launch Hilux Vigo Champ will yield positive results for the company going forward
Recent slowdown in PKR-Yen depreciation has provided a much needed relief to auto assemblers, thereby reducing costs and ultimately amplifying profits
The anti-local industry proposals in the new auto industry development policy II and foreign exchange volatility will be the prime causes of concern for Indus Motors in the future
With a FY13E TP of PKR285 per share we maintain our ‘ADD’ stance on Indus which is available at FY12E PER of 5.36x
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