Millat Tractors poised for 14% upside with Phase-II Green Tractor Scheme boost

ISLAMABAD – Millat Tractors Ltd (PSX: MTL) is projected to offer an upside potential of 14%, with a target price of Rs650 per share by December 2025, according to Taurus Securities Limited. This growth outlook is supported by the Punjab Government’s Phase-II Green Tractor Scheme, which plans to distribute 20,000 tractors with subsidies, expected to drive strong demand for MTL’s products.

MTL, holding a dominant 64% market share, stands to benefit from this scheme, particularly in the 50–65HP and 75–125HP segments, aligning well with its product offerings. The scheme is expected to add 8,000–10,000 extra units to MTL’s FY26 sales, contributing Rs14–17 per share to earnings. Phase-I of the scheme had already helped MTL exceed sales expectations in FY25.

Despite a 43% year-on-year decline in revenue during 9MFY25 due to soft farm economics and sales tax disruptions, MTL’s outlook remains positive, bolstered by the expected recovery in demand and the broader agricultural sector’s initiatives, such as the Kissan Card and Punjab’s increased budget allocation for agriculture.