SIMC Closed 81% Above Its Valuation Price on 21 October 2026: P/E of 5.5 Against 7.39 for Its Industry, With Cash and Payables Under Test

SIMC (Tabriz Wire and Cable Manufacturing) was offered on Wednesday 21 October 2026 on Farabourse's second market and closed the day at 45,864 rials, 81% above its valuation price of 25,337 rials. The question is whether, after such a jump, it can still be called cheap against its industry. On earnings the P/E is about 5.5 against an industry figure of 7.39; on cash, the suppliers' credit behind the number matters.

Background

In our 20 October report we wrote that while SIMC stayed below 30,215 rials, its P/E on nine-month earnings of 6,043 rials a share would stay under five; reaching 30,215 rials or above would void that reading. The condition broke on offering day: the closing price was 45,864 rials. The fresh calculation has to rest on twelve-month earnings rather than repeat the earlier reading.

According to the Farabourse announcement reported by Boursenews on 20 October, the offering had two stages: 32,444,824 shares (4%) by auction for qualified investors and at least 64,889,647 shares (8%) at a fixed price for others, an announced total of 97,334,471 shares (Sahmino calendar). The exchange's record for 21 October shows 97,334,316 shares traded, 155 fewer than the announced total. Individual buy volume was 64,848,124 shares and institutional buy volume 32,486,192. These volumes should not be divided to guess each trading code's allocation.

The numbers

Per the exchange record read at 17:32 on 21 October, the day's base price was 45,840 rials, the first trade and the day's high 52,397 rials, the day's low and last trade 44,107 rials, and the closing price 45,864 rials. The close is 81% above the valuation price: (45,864 divided by 25,337, minus one) times one hundred. Value traded was 4,464,159,550,848 rials, about 446 billion tomans. These are post-trade figures; the valuation price was neither the opening nor the closing price.

The amended nine-month statement to 22 September 2026, tracing number 1611396, company-only and unaudited, shows operating revenue of 50,873,947 million rials against 26,379,823 million a year earlier, up 93%. Gross profit is 10,371,736 million rials. Net profit is 4,901,848 million rials against 1,726,403 million in the restated comparison column, up 184%. One million rials is 100,000 tomans, so net profit is about 490 billion tomans. The fiscal year ends 21 December 2026, and only nine months have been filed.

Rebuilt twelve-month earnings to 22 September combine the filed statements and come to about 8,285 rials a share; this column is not printed in the nine-month letter. The exchange board also shows 8,285 rials. Dividing the 45,864-rial close by 8,285 gives a P/E of about 5.54, against 7.39 for the industry on the exchange board. The gap, (7.39 minus 5.54) divided by 7.39, is nearly 25%. The calculation sets price and earnings on one date; it does not pair the offering-day price with next year's unreported earnings. On nine-month earnings of 6,043 rials the ratio is 7.59, but nine months and twelve months are not comparable.

In Sahmino's screener, 15 symbols in the electrical machinery industry have positive twelve-month profit on the overnight calculation. NIRO shows a board P/E of 4.9, SIMC 5.5, TRNS 5.7 and ABCZ 6.1. These four are a comparison choice, not a ranking of the whole market, and their operating profit and leverage differ.

Drivers

The cautious question is cash quality. Against the end of the previous fiscal year (21 December 2025), the 22 September 2026 balance sheet shows trade and other payables of 16,451,375 million rials versus 4,150,280 million, about 3.96 times. Receivables went from 6,744,192 to 13,739,600 million rials and inventories from 6,675,617 to 11,605,809 million. Nine-month finance costs rose from 1,281,736 to 3,394,124 million rials. These lines can be examined in one balance sheet and one income statement, but the cause of each cannot be known without the sales and purchase contracts.

Net operating cash flow for the nine months was 5,411,150 million rials against 421,966 million a year earlier, even above net profit of 4,901,848 million. Over the same span, the rise in receivables and inventories totals 11,925,600 million rials and the rise in payables 12,301,095 million. The growth in payables may explain part of the cash in hand; subtracting those three figures cannot rebuild the whole cash flow. Whether such credit persists will only be known in the next report.

Outlook

With earnings held at 8,285 rials, a P/E ceiling of six corresponds to 49,710 rials. Reaching it removes the "under six" label, and if next period's earnings fall, the line moves lower even at an unchanged price. Parity with the industry's 7.39 is about 61,226 rials; that is an arithmetic comparison line, not a price target or a claim of return. One offering day is not enough to establish a post-offering trend. The Sahmino desk has not recorded a trading call on SIMC.

Verdict

The answer: at the 21 October close, SIMC is about 25% cheaper than the industry multiple on twelve-month earnings, but its profitability and suppliers' credit have to be tested in the next report. This report's reading, not a desk call: over the first 20 sessions, the SIMC price stays below 49,710 rials, provided twelve-month earnings of 8,285 rials hold; a close at 49,710 rials or higher voids this reading.

What to follow

Compare the next closing price with the 49,710-rial line and the updated earnings per share, then read the next report for receivables collection, payables and operating cash flow. In Sahmino's screener choose the electrical machinery industry and sort the price-to-earnings column; compare the result with NIRO and the SIMC page. A fresh price paired with a stale earnings denominator misleads the comparison.