Fauji Fertilizer Company (FFC): Inching closer towards being shariah compliant – By JS Research
Aug 26 2025
JS Global Capital
- Fauji Fertilizer Company (FFC) remains on the path to becoming Shariah compliant, with significant progress observed post merger with FFBL. According to the Jun-2025 financials, among the Shariah ratios, FFC has met the criteria of bringing non compliant investments to total assets ratio, to below 33%.
- Company, however, remains non-Shariah compliant due to the non-compliant income metric. We believe the expected expansion in the topline led by expected recovery in upcoming quarters coupled with the lesser contribution of non-compliant income would bode well for the company on that front.
- We have fine-tuned our estimates based on Jun-2025 accounts and rolled forward our TP to Jun-2026 arriving at a revised TP of Rs490. At current prices the stock offers total return of 22% including CY26E D/Y of 10%.
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