APL stands as the second largest OMC in terms of storage.

APL has demonstrated consistent progress in terms of expanding retail presence, averaging 31 new outlets annually since FY16, alongside expanding and revamping product storage facilities at a similar pace.

·         APL stands as the second largest OMC in terms of storage, commanding 10.4% market share in 4MFY24 (vs. 9.57% in FY23).

·         APL being the marketing arm of the Attock Oil Group, benefits from having its working capital financed by refinery peers, with payable days far exceeding working capital requirements.

·         Lastly, company holds a substantial amount of cash and equivalents of PkR34.5bn (PkR277/sh) on balance sheet, where-in we expect robust finance income of PkR67/sh (39% of PBT) for FY24 amidst higher average interest rates.

·         We highlight APL as our top pick from the sector, with the company offering a perfect mix of capital upside and dividend yield. We reiterate our ‘Buy’ stance on the company with a Jun’24 target price of PkR485/sh, offering a total upside of 43% from current price level.



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