Pak Aluminium Beverage Cans Faces Export Challenges Amid Border Issues and Regional Competition

Karachi: Pak Aluminium Beverage Cans Ltd (PABC) is confronting a challenging outlook for its exports, according to a recent analysis by JS Global. The report has led to a revision of the company’s earnings estimates for the years 2025 and 2026, with expectations for earnings per share (EPS) reduced by 9% and target price (TP) adjusted down by 4%. These changes are attributed to anticipated declines in volumes due to ongoing border issues with Afghanistan and the looming expansion of production capacities in Central Asia. These factors are poised to negatively affect PABC’s export potential to these regions.

The company has maintained its under-perform rating with a target price of Rs110. Analysts have expressed concerns that any potential reduction in regulatory duties in the forthcoming budget could exert additional pressure on PABC’s sales volumes. Currently set between 22% and 26%, these duties might be reduced to 15% or lower, which could lead to an influx of cheaper products in the local market, challenging PABC’s sales.

The report also identifies the resumption of dividend payouts, and announcements of capital expenditure or investment plans as potential catalysts that could influence the company’s stock in the future. As of March 2025, PABC holds a net cash position of Rs10.7 billion, which could provide some financial stability amid these challenges.