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Analyst Opinion
ENGROH - Engro Holding Ltd. Consolidated
ENGROH in proper perspective: Trailing PE 10.6x | forward PE 6.5x
Ahsan Muhammad Asif    3/10/2026 12:00:00 AM
ENGROH in proper perspective: Trailing PE 10.6x | forward PE 6.5x ENGROH posted a net profit of PKR 107.03bn (EPS: PKR 46.2/sh) in CY25, up from PKR 43.24bn (EPS: PKR 26.78/sh) in CY24. The reported EPS of PKR 46.2/sh vs PKR 22.07/sh restricted from accounting adjustments, resulted in an adjusted underlying EPS of around PKR 24.13/sh in CY25. ENGROH events In the analyst briefing held a couple of days ago, ENGROH management highlighted that, when comparing current results with previous periods, three major factors should be considered. These include: - the inclusion of the Deodar acquisition involving Jazz's tower subsidiary at ~$563mn – $600mn, stated to be in the company’s financial position. - the restructuring of the Engro Group, which resulted in changes in shareholding structure, - the termination of the share purchase agreement, leading to one-off accounting adjustments and reclassification of discontinued operations. The termination of SPA refers to Engro Energy (EE) cancellation of deals to sell its thermal energy assets (including Engro Powergen Qadirpur, Engro Powergen Thar, and Sindh Engro Coal Mining) to Liberty Power Holdings and its consortium. Connectivity (Telecom Tower) Segment The platform currently operates 15,012 telecom towers with an average tenancy ratio of 1.27x, and they want to target an increase in tenancy to ~2.0x in the medium term. This will strengthen recurring cash flows. Tower Expansion Plans On a preliminary basis, ENGROH expected to add approx 400–450 new towers. The estimated cost per tower is around PKR 10 mn, excluding solarization, while installing solar solutions would require an additional investment of approximately PKR 2.5 mn per tower site. Fertilizer Segment The Engro Fertilizers (EFERT) recorded its highest quarterly fertilizer offtakes, mainly driven by discounting strategies. As a result, inventory levels have now largely normalized. However, dividend payouts were reduced to conserve cash due to the impact of the super tax. Just to remind that EFERT paid CY25 cash dividend of PKR 15/sh only. We expect ENGROH CY26 PE @6.5x alongside a renewed dividend stream.