Is IMAGE Pakistan (IMAGE) Worth Buying Right Now?

Investors often ask whether Image Pakistan Limited (IMAGE)is a buy at current levels. To answer this from a research report perspective only, we look at how analysts describe the company’s performance, valuation, and business prospects — without adding our own assumptions.

IMAGE’s Business and Recent Performance

IMAGE Pakistan is a textile and apparel company focused on embroidered fabrics and ready-to-wear garments sold through its own stores and online channels. The firm has been growing sales while working to improve profitability. In FY25, revenue increased about 15.7 percent year-on-year and net profit nearly doubled versus the prior year, with earnings per share around PKR 3.30. In 1QFY26, top-line growth continued but earnings dipped slightly year-on-year.

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Financial reports also highlight IMAGE’s retail expansion, new product lines, and efforts to balance online and physical sales to capture demand.

Valuation According to Market Metrics

Price-to-Earnings and Other Ratios

At recent prices near PKR 25-26, IMAGE trades at a trailing P/E ratio around 8x. That suggests the stock is earning profit at a rate that makes investors pay roughly 8 times its annual earnings for a share. For many textile and apparel peers, this is not excessively high, indicating the market views the stock as reasonably valued. IMAGE’s price-to-book ratio around 1.2-1.3x also shows the stock trades close to its book value.

One valuation model from Simply Wall St suggests that IMAGE’s share price trades above a simple calculated fair value estimate, meaning that based on one discounted cash flow method the stock might be priced higher than intrinsic value. However, this depends heavily on the valuation assumptions used.

Dividend Yield

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IMAGE offers a dividend yield near 7.8 percent, which indicates a relatively high return in the form of dividends compared to some peers. This may appeal to income-focused investors, though dividend consistency and future payouts depend on profitability.

What Analysts Highlight in Reports

Growth and Operational Improvements

Research briefs note that IMAGE has improved gross margins and is expanding its retail store footprint, with more outlets planned. Investments in production capacity and a diversified sales mix (store plus online) are seen as positive for future performance.

Near-Term Challenges

In early 2026, IMAGE’s quarterly results showed some pressure on profits due to costs and exchange rate effects, even though revenue grew. This means operational headwinds still exist and may need time to fully resolve.

Valuation reports also point out that simply using P/E comparisons can show IMAGE trading at levels similar to peers, so the discount case is not always clear-cut.

Key Considerations From Research

Valuation Isn’t Extremely Cheap

Based on reported ratios, IMAGE trades at a reasonable P/E and book value, but not a deep discount compared to peers. Some valuation models even suggest the stock price is above certain fair-value estimates.

Business Shows Growth Signs

Analyst-like briefings emphasize improving sales, expanding retail footprint, and higher margins, which support a positive outlook if execution continues.

Profitability Can Be Volatile

Quarterly results point to cost pressures and an earnings decline in 1QFY26 versus the prior year, reminding investors that profitability is not always smooth.

Conclusion Based on Research Reports

From a research-report perspective:

• IMAGE’s valuations are reasonable but not deeply discounted relative to industry norms.
  
• The company shows growth and profit improvement, backed by rising revenues and margin recovery.
  
• Analysts highlight operational risks and cost pressures that can blunt earnings momentum.
  

Whether IMAGE is “worth buying right now” ultimately depends on an investor’s preference for growth versus valuation comfort, but research reports suggest it is not an obvious bargain, even though fundamentals have improved.

⚠️ 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 →