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SAZEW - Sazgar Engineering Works Ltd.
Sazgar Engineering Works Limited (SAZEW) – Production & Sales increasing | Leading P/E 6.0x | PBV 2.26x | Exp Book value PKR 722/sh
Ahsan Muhammad Asif    4/7/2026 12:00:00 AM
SAZEW is currently trading at an estimated P/E of 6.0x, with an expected price-to-sales ratio of 0.73x and price-to-book value of 2.26x, based on an expected book value of PKR 722/sh. SAZEW reported a record performance in March 2026, with four-wheeler production reaching an all-time high of 1,808 units. This represents a 2.1x increase compared to the previous year and a 10% rise from the month before. The data indicates a continued upward trend in production volumes, consistent with the gradual expansion seen since 2023, as also shown in the accompanying chart. On a cumulative basis, the company’s production for the 9MFY26 totaled 12,871 units, a 55% increase over the SPLY. This growth suggests sustained expansion in manufacturing activity over the past year, likely supported by improved operational capacity and steady demand conditions. Sales performance also demonstrated notable growth during the period. In March 2026, SAZEW reported sales of 1,734 units, reflecting an 84% increase YoY and a 3% rise from the last month. The sales figures remain broadly aligned with production levels, indicating that most of the output is being absorbed by the market without a significant buildup of inventory. Cumulatively, sales for 9MFY26 reached 12,630 units, up 57% YoY. The close proximity between production and sales volumes suggests a relatively balanced demand-supply situation during the period. Overall, the data indicates continued growth in both production and sales, although the pace of month-on-month increases appears more moderate compared to the year-on-year gains. On a cumulative basis, the company’s production for the first nine months of FY2026 (9MFY26) stood at 12,871 units, a 55% increase over the SPLY. This growth suggests sustained scaling of manufacturing activity over the past year, potentially supported by improved operational capacity and steady demand. Sales performance also showed notable growth during the period. In March 2026, SAZEW reported sales of 1,734 units, reflecting an 84% increase YoY and a 3% rise MoM. The sales figures remain broadly aligned with production levels, indicating that most of the output is being absorbed in the market without a significant buildup of inventory. Cumulatively, sales for 9MFY26 reached 12,630 units, up 57% YoY. The close proximity between production and sales volumes suggests a relatively balanced demand-supply position during the period. Overall, the data points to continued expansion in both production and sales, though the pace of month-on-month growth appears more moderate compared to year-on-year gains. The Board has approved an estimated capital expenditure of PKR 22.0 bn (excluding land cost), to be financed through a mix of internal cash generation and bank borrowings. Upon completion, the total installed production/assembly capacity of the four-wheeler plant is expected to increase to 54,000 units per annum on a single-shift basis, indicating a planned scale-up in operations over the medium term.
Link: https://www.linkedin.com/in/mahsan178/