AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Ghandhara Automobile Ltd (GAL) has reiterated its optimistic outlook by maintaining a Buy rating, with a significant increase in earnings projections for the fiscal years 2026 and 2027. This growth is attributed to a remarkable rise in demand for trucks and light commercial vehicles (LCVs), coupled with the successful launch of the JAC-T9 Frison.
The company has reported a 70% year-on-year increase in truck and LCV demand for the first four months of FY26, leading to a 13% boost in earnings forecasts for the upcoming fiscal years. In addition to robust domestic sales, GAL’s associate income has seen a substantial uplift, with GHNI volumes surging by 84% year-on-year during the same period.
Management has underscored the impressive debut of the JAC-T9 Frison, with 1,000 units already booked by consumers. As a result, GAL has adjusted its sales projections for the JAC-T9 from 3,600 to 3,800 units for FY26, although they anticipate a decline in subsequent years due to growing competition in the segment.
The company foresees continued strong demand for trucks and LCVs, buoyed by Punjab’s zero-financing program for commercial vehicles and a favorable consumer environment fostered by lower interest rates.
With these developments, GAL has revised its December 2026 target price to Rs820, reflecting a 15% increase. These projections signal a positive trajectory for the company as it capitalizes on current market dynamics and strategic product launches.