Automobile Sector — PSX Analysis
The automobile sector includes vehicle assemblers and parts manufacturers. Pakistan's auto industry produces cars, trucks, motorcycles, and tractors, with a mix of Japanese and local manufacturers.
At a Glance
- Companies tracked
- 8
- Valuation approach
- Asset-heavy
- Reference P/E
- 8-14x
- Reference P/B
- 1.5-3.0x
- Reference dividend yield
- 2-5%
Reference ranges are SeekhKar editorial benchmarks for comparison, not live market figures. To check a company against them, use today's price from your broker and its latest reported EPS, book value and dividends. Models used: Graham Number and P/E-relative.
Automobile Stocks Compared
The listed companies side by side on their latest results: P/E, P/B, dividends, growth and debt.
All KSE-100 comparisons by sectorEarnings Drivers
Vehicle demand cycles, auto financing rates, new model launches, localization levels, and agricultural income (for tractors).
Key Metrics to Watch
Sales volumes, localization ratio, gross margin per unit, inventory days, and market share by segment.
Investment Risks
High reliance on imported parts, currency devaluation, interest rate sensitivity, import policy changes, and cyclical demand.
How to Value Companies in the Automobile Sector
Asset-heavy. Plant-intensive businesses whose book value is mostly tangible assets. The Graham Number (earnings and book value together) and P/E against the sector median suit them; cyclical earnings make long DCF projections unreliable.
Graham Number
√(22.5 × EPS × book value per share): a quick ceiling price for steady, profitable companies.
P/E-relative
EPS × the sector's typical P/E: what the company would be worth if the market priced it like its peers.
SeekhKar's own models assume a 19% required return for this sector. Use them as a starting point in the calculators and test higher and lower values. These are editorial assumptions, explained on the Methodology page.
Frequently Asked Questions
Calculators for This Sector
Run the methods that suit Automobile companies with figures from their latest reports: