Karachi: Pakistan Aluminium Beverages Cans Ltd (PABC) is projected to report a 27% year-over-year growth in earnings for the third quarter of CY24, amounting to Rs1.88 billion, with an earnings per share (EPS) of Rs5.22.

According to JS Global, the growth in PABC’s earnings is primarily driven by a rise in aluminium prices, which the company has passed on to end-product prices, and stronger exports. Despite this strong performance, the company is not expected to announce a cash dividend for the quarter. PABC’s management is on track to meet its full-year revenue target of Rs18 billion by the end of the third quarter of CY24.

The report also notes a 25% increase in the estimated EPS for CY24 to Rs15.5, reflecting better-than-expected earnings in the second and third quarters. However, JS Global does not anticipate a cash payout until 2026 due to a tax on dividends, which is expected to normalize to 15% from the current 25% during the tax-exempt period.

PABC’s stock price has increased by over 60% since JS Global initiated coverage in October 2023. Although significant growth triggers have already been factored into the stock price, further market re-rating could unlock additional valuations. The firm maintains a “Hold” recommendation on PABC with a target price of Rs87.