KARACHI: AGP Limited and GlaxoSmithKline Pakistan Limited are anticipated to show robust earnings growth in the third quarter of the calendar year 2025, driven by increased prices and margins, alongside seasonal sales impacts.

AGP Limited is expected to report consolidated earnings of Rs1.1 billion, translating into an earnings per share (EPS) of Rs3.8. This marks a significant year-over-year increase of 54% and a quarter-over-quarter growth of 72%. The company's earnings expansion is primarily attributed to price hikes and enhanced margins, while the sequential improvement is largely due to seasonal fluctuations in drug sales.

GlaxoSmithKline Pakistan Limited is projected to announce earnings of Rs2.3 billion, with an EPS of Rs7.21, reflecting a 19% increase compared to the same period last year. On a sequential basis, the company is likely to experience an 11% rise in profitability, spurred by a recovery in the topline. Over the first nine months of the calendar year 2025, the cumulative earnings per share for GlaxoSmithKline Pakistan are expected to reach Rs20.4, representing an 81% year-over-year increase.

JS Global's analysis maintains an Overweight stance on the pharmaceutical sector, with AGP and GlaxoSmithKline Pakistan highlighted as top picks. Both companies are currently trading at a calendar year 2026 estimated price-to-earnings ratio of approximately 11.4x and 11.1x, respectively.