ISLAMABAD: Ghandhara Automobiles Limited (PSX: GAL) is poised for significant growth, with Arif Habib Limited (AHL) projecting a target price of Rs764.7 per share by June 2026, representing an upside potential of 40.1% from the current closing price of Rs531 per share.
In its latest coverage, AHL has issued a ‘Buy’ recommendation for GAL, highlighting the company’s sharp acceleration in profitability. The earnings per share (EPS) for FY25 is estimated at Rs66.4, rising to Rs96.55 in FY26, driven by the full impact of the JAC-T9 Hunter pickup model, which has received strong demand in Pakistan’s premium pickup segment.
AHL’s outlook is further supported by the growing demand for commercial vehicles, bolstered by rising economic activity and large-scale development projects. GAL, along with its 17.91% stake in Ghandhara Industries Limited (GHNI), is positioned to benefit from these trends. In FY26, AHL expects GAL to achieve a 25% growth in light commercial vehicle sales and 15% growth in medium and heavy-duty truck sales.
The JAC-T9 Hunter’s competitive pricing and advanced features have led to such strong demand that bookings were briefly suspended. With an average of 267 units projected to be sold monthly in FY26, GAL’s profitability is expected to see substantial growth. AHL forecasts strong EPS gains, with dividends of Rs5 per share in FY25 and Rs7 per share in FY26.
The commercial truck segment is also expected to thrive, supported by economic revival, increased trade activity, and key infrastructure projects, including the Reko Diq copper-gold project. GAL and GHNI will benefit not only from vehicle sales but also from maintenance, spare parts, and logistics partnerships.
AHL’s analysis shows that GHNI will remain a key earnings source for GAL, with truck sales expected to grow 15% and bus sales 10% in FY26. This will contribute significantly to GAL’s bottom line, reinforcing the company’s positive outlook.
