3 Best Stocks For 2026
Pakistan’s stock market in 2026 is increasingly rewarding companies that are combining strong earnings momentum with long-term strategic expansion. Investors are now focusing more closely on businesses that are not only delivering solid quarterly results, but are also building future growth engines through diversification, operational efficiency, and disciplined capital allocation. Among the companies attracting the strongest attention are The Hub Power Company Limited, Engro Holdings Limited, and Indus Motor Company Limited. Recent corporate briefings and quarterly results suggest that all three companies are entering 2026 with improving profitability, expanding business segments, and multiple operational catalysts.
3. The Hub Power Company Limited (HUBC)
The Hub Power Company Limited is increasingly transitioning beyond the traditional independent power producer model through expansion into electric vehicles, charging infrastructure, offshore exploration, and industrial redevelopment.
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Latest Quarterly Results Showed Strong Earnings Recovery
HUBC reported consolidated net earnings of PKR 10.6 billion during 2QFY26, representing a 152% year-over-year increase. Earnings per share for the quarter rose to PKR 8.2 compared to PKR 3.3 during the same period last year. For the first half of FY26, consolidated earnings reached PKR 22.8 billion, translating into earnings per share of PKR 17.6. Management described this period as part of the company’s “harvesting phase,” supported by stable operations and improving cash generation from underlying assets.
Automotive And EV Expansion Became A Major Strategic Theme
One of the biggest developments during 2026 was the company’s expansion into automotive manufacturing and EV infrastructure. In January 2026, HUBC achieved financial close for its Completely Knocked Down (CKD) assembly plant through a 50/50 joint venture with Mega Motors to produce BYD vehicles in Pakistan. Construction activities are currently underway, while the Commercial Operations Date (COD) is targeted for the second half of 2026. The plant is expected to have an annual production capacity of 25,000 units. Through its subsidiary “Hubco Green,” the company also established a nationwide EV charging corridor with 16 operational DC fast chargers ranging between 60kW and 120kW capacity. Management indicated that EV connectivity was scheduled to reach Peshawar by the end of February 2026.
Exploration Projects Added Long-Term Optionality
Beyond power generation and automotive expansion, HUBC continued building exposure toward offshore exploration and mineral development. Through Prime International, where the company holds a 40% stake, HUBC completed 2D and 3D seismic surveys for the offshore “Zin” block. Management plans to begin drilling activities by late 2026 or early 2027, depending on rig availability. Exploration work at Ark Metals also identified promising reserves of copper, gold, lithium, and antimony. The company is additionally evaluating redevelopment opportunities for its 1,100-acre Hub industrial site, including conversion into an aluminium smelter or a Single Point Mooring (SPM) oil terminal in partnership with Pakistan State Oil.
FY2026 Outlook Remained Strong
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Management expects consolidated EPS for FY26 to reach approximately PKR 35.4 to 35.6. Dividend per share for FY26 is estimated between PKR 17.0 and PKR 20.0, supported by steady-state inflows from CPEC Independent Power Producers (IPPs) like TEL, which paid a dividend of PKR 5.2 billion during 3QFY26. The company’s projected dividend yield ranges between 8.8% and 9.0%, while the FCFE yield is estimated at 11%. Management also highlighted that nearly 75% to 85% of company earnings remain linked to PKR-US$ parity through tariff indexation and sovereign guarantees. Institutional confidence remained visible during early 2026 after Mega Conglomerate increased its stake in HUBC to 19.5%.
⚠️ 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 →
Comment (1)
It’s refreshing to see the shift toward companies like HUBC that are expanding beyond traditional models to build future growth engines through diversification. I especially agree with your point about how operational efficiency and disciplined capital allocation are becoming the true differentiators for investors in 2026.