Karachi: Pak Aluminium Beverage Cans Ltd (PABC) is expected to report a significant increase in its earnings per share for the first quarter of the calendar year 2025. According to a recent preview by JS Research, the company's EPS is anticipated to reach Rs4.4, marking a 76% year-over-year increase. This growth is attributed primarily to a recovery in local sales, which has driven margins, alongside an increase in other income.

JS Research has revised its earnings estimates for PABC upward by 11% for CY25E and 8% for CY26E. The target price for PABC stock has been adjusted to Rs115. These revisions take into account the detailed accounts for CY24, updated macroeconomic assumptions, and the outlook for aluminum prices.

Despite the strong earnings performance, JS Research maintains an "Under-perform" rating for PABC. This stance is based on the strong run-up in the stock price, a slower-than-expected recovery in domestic demand, and an anticipated decline in earnings from CY27E as the company transitions into a normal tax regime.

The report identifies key triggers for the stock moving forward, including the resumption of dividend payouts, given PABC's healthy cash position, and any announcements regarding capital expenditures or investment plans.