The Nishat Group’s Strategic Pivot: Analysis of Recent Launches, Market Impact, and Future Profitability

The Nishat Group

The Nishat Group is one of Pakistan’s biggest business families and was established by the Mansha family.
The founder of Nishat Group is Mian Muhammad Mansha. They started with a small textile business and later
established their first textile mill: Nishat Mills Limited.

After earning profits in textiles, they expanded into cement (DG Khan Cement), banking
(MCB), and power generation. However, growth across these mature businesses has slowed
and profits have not increased significantly. Therefore, in 2026 they decided to enter
modern industries where future growth is larger:

Modern cars (hybrid-electric vehicles)
Food (a high-cashflow, continuous-profit business via acquisition)

For investors, this presents a unique thesis: a mature conglomerate attempting to rejuvenate its growth
curve through aggressive capex. This article dissects whether this strategy can translate into shareholder value.

Recent Developments and Launches

Automotive: Omoda and Jaecoo J5 SHS HEV Launch

On 17th January 2026, Nishat achieved a milestone by introducing the all-new
Jaecoo J5 SHS HEV—the first global market to get the J5 in a hybrid form.

Significance

Hybrid car (Petrol + Battery)
No need for charging stations
Self-charging hybrid
Fuel-saving → lower running cost
Important because Pakistan has limited charging network; hybrids work better
Positioned as an affordable hybrid SUV

Automotive: Hyundai Palisade Local Assembly Announcement

After the Jaecoo launch, Hyundai Nishat Motors announced that after South Korea,
Pakistan will become the 1st country to locally assemble the Hyundai Palisade.
The announcement was in February 2026. The purpose is to capture the premium segment.

Significance

Premium luxury SUV
High profit per car (even if volume is low)
Cheaper than imported alternatives
Powerful engine with good fuel efficiency
Competes with other imported luxury SUVs

Automotive Ancillary: N-SPRINT Lubricants

Nishat also introduced N-SPRINT by collaborating with Japanese giant
Idemitsu to develop a range of genuine engine oils—enhancing ownership experience and
creating an aftermarket revenue stream.

Rafhan Maize: Cash Flow Powerhouse

The most significant financial move is the acquisition of a controlling stake up to
75.10% in Rafhan Maize Products Company Limited from US-based
Ingredion Incorporated.

Deal Value: approx. Rs 100 billion (≈ $355 million).

Rafhan has strong pricing power, regular demand, and application across multiple industries.

Sales Projection and Market Impact (2026–2028)

Sales Forecast of Automotive

Jaecoo J5 SHS HEV: Introductory prices are active till 10th March 2026.
With limited hybrid competition, projected monthly sales are 500–700 units for FY2026,
capturing a visible share of the 1300cc–1500cc SUV market.

Hyundai Palisade: Expected price is approx. Rs 15 million.
Volume should be lower but high value. Starting from August 2026, projected post-launch
sales are 100–150 units per month. This segment is small but highly profitable.

Rafhan Maize Integration

Rafhan revenue exceeds approx. Rs 50 billion annually. Nishat is expanding Rafhan’s reach
into rural markets, projecting a 10–15% revenue uplift in the first two years
of ownership.

Profitability Analysis: Margin Expansion and Investment Cycle

Group-wide Margin Analysis

The Nishat Group is in an investment phase now; however, Rafhan itself is highly profitable.

Short Term (FY26): Heavy investment may reduce profit margins.
Medium Term (FY27–28): Margins can improve due to hybrid scale and Rafhan’s high profitability.

Investment Analysis: Is it good to invest in Nishat Group?

Nishat Mills Limited (NML): Currently undervalued and best represents the whole group.
Nishat Chunian Limited (NCL): Attractive when exports are strong, but higher risk.
Nishat Power Limited (NPL): Weak profitability; dividend risk.
DG Khan Cement: Depends on construction growth and cycle.

Segment-by-Segment Profitability

Segment	Current Margin Profile	Future Catalyst
Textile	Low double-digit (10–12%)	Growth export to EU/US
Automotive	Mid-single digit	Hybrid localization increases margins
Cement	Cyclical	Construction demand, PSDP spending
Food (Rafhan)	High (25–30%)	Pricing power, market dominance
Power	Negative/flat	Circular debt resolution needed

Metrics and Peer Comparison

Company	P/E (TTM)	P/B (MRQ)	Dividend Yield	Key Takeaway
Nishat Mills	~10x	~0.8x	~1.5%	Considered undervalued
Nishat Chunian	~9.3x	0.6x	4.2%	Textile cyclical and cheap
Nishat Power	-17x	1.11x	8.95%	Risk of yield trap; negative earnings
Industry Average	~17–20x	~1.5x	~5–7%	NML/NCL trade at discount

Risk and Mitigants

Risks we can face

Integrating Rafhan
Slow economy
Car sales drop
Power sector issues

Mitigants: Nishat is an experienced group and is diversifying income streams.

Analyst Consensus and Price Target

Bull case: Auto sales exceed 1000 units/month → high upside. NML Target: PKR 900–1000
Base case: Moderate growth and price increase. NML Target: PKR 750–800
Bear case: Weak economy → price decreases. NML Target: PKR 550–600

Data Visualization (Tables)

Recent launches and development at a glance

Development	Segment	Date	Key Features	Investment Impact
Jaecoo J5 SHS HEV	Auto	Jan 2026	Global first launch (HEV)	Market share gain
Hyundai Palisade	Auto	Feb 2026	1st CKD assembly outside Korea	High margin and low volume
N-SPRINT Lubricant	Auto parts	Feb 2026	Idemitsu collaboration	Aftermarket revenue
Rafhan Maize Acquisition	Food	Feb 2026	Rs 100bn deal, ~75% stake	Transformational, high margin

Projected revenue contribution from new launches

Business line	FY26 Project revenue	FY27 Project revenue	Key Driver
Jaecoo J5 HEV	10–12	15–18	Hybrid uptake
Hyundai Palisade	3–5	8–10	Luxury demand
Rafhan Maize	~55–60	~65–70	Market leadership
N-SPRINT	0.5–1	1.5–2	Dealership network

Conclusion: Strategic Recommendations for Investors

Major changes are occurring in Nishat Group. They are building new businesses alongside legacy segments
like textile, cement, and power generation. Key investor takeaways:

Long-term investors: Prefer NML
Growth traders: Watch auto success
Income investors: Avoid power
Textile investors: NCL hold

The Rafhan acquisition adds stability, while hybrid vehicles create growth potential. Overall, Nishat is shifting
from a traditional industry group to a diversified modern business.

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