· We revisit our investment case for Attock Petroleum Limited (APL), revising Dec’23 target price to PkR390/sh from previous PkR370/sh, providing a total return of 48% from last close.

· The much awaited revision in OMC margin provides significant impetus to our valuation, subsequently we have incorporated uniform OMC margins of PkR6/liter for both MS & HSD from March 2023 onwards, up 61%/51% from current levels for MS/HSD

· The company plans to setup two more terminals in the northern region, namely Dera Ismail Khan and Tarrujabba with capacities of 17.5k and 22.9k, respectively, with an estimated capex of PkR2.5bn between FY23 and FY24.

· Company’s near-to-none leverage (1QFY23 D/E: 0.52%) places it in forefront to absorb any monetary contractions going forward.

AKD Research