Pakistan Aluminium Beverage Can Ltd (PABC): Recent rally of 50%+ and budgetary measures limit upside – By JS Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We lower our stance from &lsquo;Buy&rsquo; to &lsquo;Hold&rsquo; on Pakistan Aluminium Beverage Can Ltd (PABC) following (i) a 50% run-up in the stock price since our initiation in Oct-2023, and (ii) recent budgetary measures that negatively impact the later years of our investment horizon of the company (CY27 onwards). The stock currently offers total return of 13% to our downward revised TP of Rs80 (from Rs95 earlier), including CY24E D/Y of 8%.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">As FY25 Budget shifts exporters from minimum turnover tax to normal tax regime, our earnings estimates for CY27F and onwards have been revised down by 23% as company&rsquo;s effective tax rate increases fro...