Fakour Sanat Prices Itself at Near 3.8 Times Forecast 2026/27 Profit Ahead of Its Farabourse IPO (Monday, October 5, 2026)

Tehran Fakour Sanat Engineering Company, trading symbol "Fakour", held two investor briefings on Sunday and Monday, October 4 and 5, 2026, ahead of its initial public offering on Iran Fara Bourse's second market. The company's own valuation report, presented at the briefing, puts its equity value at 24.8 trillion tomans and its per-share value at 3,544 rials, which against a forecast net profit of about 6.5 trillion tomans for fiscal year 1405 (2026/27), implies a price-to-profit ratio near 3.8 times.

Background

Fakour Sanat has operated for more than 33 years in industrial and mining engineering, construction and contracting, and is majority owned by the Namad Sanat Pars Group. Its path to the capital market began in October 2024 with Fara Bourse admission approval; it registered as a public issuer with Iran's Securities and Exchange Organization in December 2025, and its symbol "Fakour" was entered on Fara Bourse's second-market price list, under the technical and engineering services group, the following month. According to Borna News (October 4, 2026), the IPO itself is expected early this week, though Fara Bourse has not yet formally announced the exact date or method.

Key Figures

• Fiscal 1404 (2025/26) revenue: 53 trillion tomans; net profit: 6.8 trillion tomans (investor briefing, October 4, 2026).
• Contracting-segment revenue for the same year: 34 trillion tomans; contracting-segment net profit: 6.1 trillion tomans.
• Registered capital: 7 trillion tomans; total assets: 54 trillion tomans; direct workforce: about 2,600.
• Debt ratio fell from 83 percent in 1398 (2019/20) to 67 percent in 1404 (2025/26).
• Valuation advisor's estimate (Kardan Investment Bank, averaging four valuation methods): equity value 24.8 trillion tomans; per-share value 3,544 rials.
• Forecast net profit for fiscal 1405 (2026/27): about 6.5 trillion tomans; implied price-to-profit ratio: 24.8 / 6.5 ≈ 3.8 times (on trailing 1404 profit, 24.8 / 6.8 ≈ 3.6 times).
• Iron-ore concentrate output in 1404: 2.87 million tons, the country's seventh-largest producer.

Drivers

The first driver is balance-sheet repair: the debt ratio has fallen from 83 to 67 percent over six years, easing financial pressure ahead of listing. The second is project scale and diversity: the company is running 12 contracting projects at once across the iron-ore, sponge-iron and steel chain, and management says it is pursuing entry into Iraq, Kazakhstan and now Afghanistan. The third is the forecast 1405 revenue mix: per the valuation report, contracting revenue is estimated at about 51 trillion tomans against roughly 7.7 trillion tomans from manufactured-product sales, meaning more than 86 percent of revenue still comes from contracting.

Outlook

Fakour's estimated 3.8-times price-to-profit ratio sits below several of the cheap metals and chemicals names Rasad's own screener has flagged recently, such as Kimia Polyester at around 6.6 times, though the two are not the same industry and the comparison should be read cautiously. The main risk is the gap between the IPO's discovered price and the 3,544-rial estimate: in recent Tehran and Fara Bourse listings such as Zeshk, discovered prices and their aftermarket path have at times diverged meaningfully from initial estimates. The second risk is ownership concentration: nearly all shares remain with the controlling shareholder, with only a portion floated at the IPO.

Bottom Line

Fakour Sanat looks cheap on a forecast price-to-profit ratio near 3.8 times: its pre-IPO estimate puts each share at 3,544 rials, with a 1405 P/E near 3.8. That reading holds only while the IPO's discovered price does not land far above this estimate; a sustained close below 2,800 rials in the first trading week would invalidate it.

What to Watch

• The exact IPO date and method, from Fara Bourse's official notice.
• The discovered offer price against the 3,544-rial estimate.
• The debt ratio and margin trend in Fakour's coming quarterly filings.
• The pending 800 billion-toman capital increase from retained earnings, and the cash-based increase planned after listing.