Interloop Limited Maintains ‘Buy’ Rating Amid Expansion Plans

Karachi: Interloop Limited, a prominent player in Pakistan’s textile industry, has maintained its ‘Buy’ rating with a projected target price of Rs104 by December 2025. Despite revising its earnings outlook for the first half of FY25, the company is pushing forward with significant expansion and cost optimization initiatives, capitalizing on opportunities arising from shifts in global textile trade dynamics.

According to JS Global, Interloop’s strategic expansion includes the full commissioning of its Apparels green-field project by the end of FY25, alongside ongoing expansions in its Hosiery and Denim sectors. The company has already invested Rs5 billion in capital expenditures this quarter and transferred Rs20 billion to its operating assets, supplementing an earlier announced capital expenditure plan of US$92 million.

While the company has adjusted its expected earnings per share for FY25 to Rs4.71 due to a weaker earnings outlook in the first half, it anticipates a recovery in Hosiery margins in the latter half of FY25. Additionally, the ramp-up of its Apparels division by FY26 is expected to realign earnings growth, bolstering its financial trajectory beyond FY26.

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