Fertilizer Sector — PSX Analysis
The fertilizer sector is critical to Pakistan's agricultural economy. Urea is the primary fertilizer product, with demand driven by the Kharif and Rabi cropping seasons. Companies benefit from subsidized gas feedstock.
At a Glance
- Companies tracked
- 4
- Valuation approach
- Dividend payers
- Reference P/E
- 7-10x
- Reference P/B
- 2.0-3.0x
- Reference dividend yield
- 6-9%
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: Dividend discount model and Graham Number.
Fertilizer 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
Urea offtake volumes, gas prices for feedstock, government subsidy policies, and seasonal agricultural cycles.
Key Metrics to Watch
Urea offtake volumes, plant utilization rates, gas cost per ton, and gross margins.
Investment Risks
Regulatory price controls on urea, gas supply disruptions, changing import policies, and weather-related impacts on crop cycles.
How to Value Companies in the Fertilizer Sector
Dividend payers. Mature businesses that distribute most of their earnings. The dividend discount model is the primary lens, cross-checked with an asset- or cash-based model.
Dividend discount model
Next year's dividend ÷ (required return − dividend growth): suits companies that pay out most of their profit.
Graham Number
√(22.5 × EPS × book value per share): a quick ceiling price for steady, profitable companies.
SeekhKar's own models assume a 18% required return for this sector and 4% long-term growth. 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 Fertilizer companies with figures from their latest reports: