Pakistan Aluminium Beverages Can Ltd (PABC): Lowering rating on stock price run-up; Underperform – By JS Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We have recently revised our rating downward for Pakistan Aluminium Beverages Can Ltd (PABC) to Under-perform due to the recent stock price run-up. Our Dec-2025 TP for the stock stands at Rs100 (19% downside).</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">The potential drop in earnings in CY25E and deleveraging of the balance sheet would restrict the expansion of the company's valuation multiples under a monetary easing scenario.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Announcement of any CapEx or diversification plan given strong cash availability (Net cash balance of Rs8.4bn as of Sep2024) with the company and resumption of cash payouts, ...