Nishat Power Ltd

Nishat Power Ltd maintains a strong liquidity position, with a current ratio of 8.24, indicating the company can easily cover its short-term obligations. The company's liquidity_fpt metric shows a net cash position of PKR 2,236,231,000, which is positive despite the presence of long-term debt of PKR 2,564,976,000. This suggests the company has sufficient cash reserves to manage its debt obligations in the near term.

In terms of profitability, Nishat Power Ltd reported a net income of PKR 1,541,804,000 and a return on equity (ROE) of 4.85%, which is below the median ROE for the Independent Power Producers industry. The company's return on assets (ROA) of 4.4% also lags behind the industry median, indicating that the company is not generating as much profit per unit of asset as its peers. The operating margin of 33.4% is in line with the industry median, suggesting that the company is managing its operating costs effectively.

Geographically, Nishat Power Ltd is heavily concentrated in Pakistan, with all of its revenue derived from this region. The company does not disclose revenue by business segment, but its primary activity is electricity generation and distribution. This concentration exposes the company to regulatory and macroeconomic risks specific to Pakistan, including currency fluctuations and policy changes.

Looking ahead, Nishat Power Ltd is projected to see a modest increase in revenue, with a growth rate of 2.5% in the current fiscal year and 3.0% in the next fiscal year. The company's capital expenditure is expected to remain negative, indicating a focus on cost management and asset optimization. The company's free cash flow of PKR 830,019,000 provides flexibility for reinvestment or shareholder returns.

The risk assessment for Nishat Power Ltd indicates a medium liquidity risk and a low dilution risk. The company's debt-to-equity ratio of 0.08 is well below the industry median, suggesting a conservative capital structure. However, the company's net cash position is negative after subtracting total debt, which could be a concern if cash flow from operations declines. The company has not issued any new shares in the past year, and there are no indications of near-term dilution pressure.

Recent events, including analyst estimates and price targets, suggest a mixed outlook for Nishat Power Ltd. The mean price target of PKR 71.50 is supported by one "buy" and one "hold" recommendation, with no "strong buy" ratings. The high price target of PKR 104.00 and the low price target of PKR 39.00 indicate a wide range of expectations among analysts. The company has not disclosed any recent major events or filings that would significantly impact its operations or financial position.

Operating and net margins exceed the independent power producer cohort median, indicating superior profitability relative to peers.

The debt-to-equity ratio of 0.08 is significantly below the cohort median of 0.43, reflecting a conservative capital structure.

Analysts maintain a buy recommendation with a mean price target of 71.5, suggesting limited downside risk at current levels.

The company faces low dilution and credit risk flags, providing a stable foundation for long-term shareholder value preservation.

Capex to revenue ratio is above the cohort median, suggesting efficient capital deployment relative to industry peers.

Cash conversion ratio of 1.62 is below the cohort median of 1.83, suggesting weaker ability to turn earnings into cash.

Revenue PKR 1.14B, +44,9% YoY; Operating income +111,4% YoY.

• ▍Revenue PKR 1.14B, +44,9% YoY
• ▍Operating income +111,4% YoY
• ▍Net income +108,7% YoY
• ▍Free cash flow +107,4% YoY
• ▍Net margin 33.6%

Revenue PKR 1.67B, −38,8% YoY; Operating income −60,0% YoY.

• ▍Revenue PKR 1.67B, −38,8% YoY
• ▍Operating income −60,0% YoY
• ▍Net income −64,6% YoY
• ▍Free cash flow −58,2% YoY
• ▍Net margin 34.9%

Revenue PKR 1.84B, −66,0% YoY; Operating income −6,6% YoY.

• ▍Revenue PKR 1.84B, −66,0% YoY
• ▍Operating income −6,6% YoY
• ▍Net income −10,8% YoY
• ▍Free cash flow −7,2% YoY
• ▍Net margin 74.2%

Revenue PKR 1.70B, −65,2% YoY; Operating income −57,9% YoY.

• ▍Revenue PKR 1.70B, −65,2% YoY
• ▍Operating income −57,9% YoY
• ▍Net income −57,9% YoY
• ▍Free cash flow −86,6% YoY
• ▍Net margin 38.3%

Revenue PKR 4.87B; Operating income PKR 1.62B.

• ▍Revenue PKR 4.87B
• ▍Operating income PKR 1.62B
• ▍Net margin 31.7%

Revenue PKR 7.06B, −68,6% YoY; Operating income −106,6% YoY.

• ▍Revenue PKR 7.06B, −68,6% YoY
• ▍Operating income −106,6% YoY
• ▍Net income −113,9% YoY
• ▍Free cash flow −232,9% YoY
• ▍Net margin -10.6%

Revenue PKR 22.51B, −2,4% YoY; Operating income +38,9% YoY.

• ▍Revenue PKR 22.51B, −2,4% YoY
• ▍Operating income +38,9% YoY
• ▍Net income +31,7% YoY
• ▍Free cash flow +74,4% YoY
• ▍Net margin 23.9%

Revenue PKR 23.07B, −2,6% YoY; Operating income +23,4% YoY.

• ▍Revenue PKR 23.07B, −2,6% YoY
• ▍Operating income +23,4% YoY
• ▍Net income +23,1% YoY
• ▍Free cash flow −28,4% YoY
• ▍Net margin 17.7%

Revenue PKR 23.68B, +107,2% YoY; Operating income +23,9% YoY.

• ▍Revenue PKR 23.68B, +107,2% YoY
• ▍Operating income +23,9% YoY
• ▍Net income +24,0% YoY
• ▍Free cash flow −16,8% YoY
• ▍Net margin 14.0%

Revenue PKR 11.43B; Operating income PKR 2.68B.

• ▍Revenue PKR 11.43B
• ▍Operating income PKR 2.68B
• ▍Net margin 23.4%