Pakistan Textile: 3QFY25E Result Preview: Profitability to dip as margin pressure outweighs finance cost relief - By AKD Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">AKD Textile Universe&rsquo;s profitability is projected to decline by 12%YoY in 3QFY25E, mainly due to lower gross margins and higher taxation.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Company-wise, NML and NCL earnings are expected to improve on an annual basis with EPS of PkR4.58/2.14 in 3QFY25E, respectively. Conversely, ILP&rsquo;s profitability is expected to decline by 66%YoY to PkR1.13/sh, mainly due to gross margin contraction.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We maintain our &lsquo;BUY&rsquo; stance on ILP, NML and NCL with Dec&rsquo;25 target price of PkR104/sh, PkR187/sh and PkR64/sh, respectively.</span></li></ul>