Why National Foods (NATF) is a Stock to Watch in 2026
The Pakistan Stock Exchange had a phenomenal year in 2025, with the benchmark KSE-100 index delivering a stellar 51% return. In such a booming market, it takes an extraordinary company to truly stand out. National Foods (NATF) is one such company. It not only participated in the rally but massively outperformed it, catching the eye of market experts at JS Global. After a year of incredible performance, several key factors suggest it could be a noteworthy stock for 2026. This article breaks down the key reasons for this positive outlook, based on a recent JS Global research report.
A Standout Performer in 2025
National Foods was one of the top-performing stocks within the JS Universe in the calendar year 2025, demonstrating significant momentum and investor confidence.
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According to JS Research, NATF was a top performer, outperforming the KSE-100 index with a remarkable return of 122% in CY25.
The Big Catalyst: A Potential MSCI Index Upgrade
One of the most significant reasons for the positive outlook on NATF is its potential upgrade from the MSCI FM Small Cap index to the main MSCI Frontier Markets (FM) Index.
An upgrade to the main MSCI Frontier Markets index is a major development for any company. This index is a benchmark used by international investors and global funds to make investment decisions in emerging economies. Inclusion often leads to increased visibility, credibility, and significant buying activity from these international funds, which can have a strong positive impact on the stock’s price.
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Based on preliminary calculations by JS Research, National Foods currently meets the minimum capitalization criteria for this potential upgrade.
| Criteria | Required Minimum | National Foods (NATF) |
|---|---|---|
| Total Market Capitalization | US$155 million | US$324 million |
| Free-Float Market Capitalization | US$78 million | US$81 million |
By meeting these key financial thresholds, NATF stands as a strong candidate for this important upgrade. This event could serve as a significant positive trigger for the stock, attracting a new class of international investors.
A Note on the Tax Situation
The Pakistani government has been considering a gradual reduction in the “Super Tax,” a tax levied on large corporations. While a reduction would be a positive development for many companies, National Foods is in a unique position. According to the JS Global report, parts of NATF’s operations fall under the Special Economic Zone (SEZ) Act, which means they are not subject to this super tax in the first place.
Conclusion: Key Takeaways for Investors
To summarize, several compelling factors make National Foods a stock to keep on the radar in 2026.
- Proven Performance: The company has already demonstrated strong momentum, delivering an exceptional 122% return to its investors in 2025.
- Expert Endorsement: Its selection as a “Top Pick” by JS Global underscores the report’s core theme that 2026 is a year for selective, high-conviction bets rather than broad market exposure.
- Major Upcoming Catalyst: The potential upgrade to the main MSCI Frontier Markets Index is a significant event that could attract foreign investment and substantially boost the stock’s profile and demand.
These combined factors are why investors are keeping a close watch on National Foods in 2026.
What Are Analysts Saying About NATF Stock?
According to the KSEStocks Database, NATF is covered by 2 analysts in Pakistan and they have an average price rating of PKR 494. This average price target suggests an upside of 20.4% from the last close of PKR 409.99.
According to EPS estimates from 1 broker, NATF has an average 2026 EPS expectation of 75.2. This suggests the stock is now trading at a forward PE of 5.5.
Why do we compile research firms’ forecasts? Broker research is fragmented across different houses. Compiling it in one place helps investors see consensus, identify divergence, and think independently rather than relying on a single view.
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Disclaimer: This article is for informational purposes only and is based on the “Beyond the boom – 2026 is about selective bets” report by JS Global dated January 3, 2026. It should not be considered as financial advice. Please consult with a professional financial advisor before making any investment decisions.
⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →
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