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.