Karachi: AGP Limited is poised to report a significant increase in earnings for the fourth quarter of the calendar year 2024, with projected growth of 71% year-over-year. This anticipated rise in earnings to Rs3.63 per share is largely attributed to the deregulation of non-essential medicines, which took effect primarily in the third quarter of the same year, marking the fourth quarter as the first to fully reflect the changes.

According to a statement by JS Global, the company's consolidated earnings per share for the entire year 2024 are expected to reach Rs8.89, reflecting a 59% increase compared to the previous year. Additionally, AGP Limited is predicted to announce a final cash dividend of Rs3.5 per share for the year 2024.

Despite a 49% rally in AGP's stock over the past three months, it has underperformed compared to the broader pharmaceutical sector. Analysts attribute this underperformance to being unwarranted, considering AGP's robust earnings growth and attractive valuations. A buy rating for AGP stock is reiterated, with a projected 36% upside leading to a target price of Rs250 by the end of December 2025.