Lahore firm’s global push lifts stock 67%, outpaces KSE-100
Pak Elektron Ltd (PSX: PAEL) is expanding its global reach with growing exports to the United States and the launch of a smart meter assembly plant in Nigeria.
The Lahore-based electrical equipment manufacturer has rallied more than 67% in one year, handily beating the KSE-100 Index, as investors increasingly view PAEL as a rising export player, not just a domestic utility story.
U.S. Export Growth and Nigerian Expansion
Exports to the United States have more than doubled in the past 12 months, now contributing 12 per cent of PAEL’s total revenues—up from just 6 per cent a year ago. The uptick is driven by commercial-grade electrical appliances and switchgear, with U.S. buyers seeking alternatives amid global supply chain rebalancing.
Adding to the momentum, PAEL began operations at its new assembly plant in Nigeria in Q1 2025. The Lagos-based facility focuses on assembling transformers and smart metering solutions for the West African market, with early contracts already in the pipeline.
“Our Nigerian operation gives us proximity to major infrastructure and electrification projects across ECOWAS,” a senior company executive said.
Earnings Momentum and Strategic Upside
First-quarter 2025 earnings rose 28% year-on-year, boosted by margin expansion, stable input costs, and currency-driven export gains. Analysts project continued top-line acceleration in H2 2025, with export receipts and Nigerian operations expected to be key growth drivers.
“The rupee’s weakness is working to PAEL’s advantage on the export front,” noted a research report by JS Global. “Its diversification strategy provides insulation from local macro shocks.”
Risks and Catalysts Ahead
While potential fiscal tightening and currency volatility remain watchpoints, analysts say structural reforms under CPEC Phase-II and new energy investments provide strong policy tailwinds.
