These 5 Could Soar in FY26 according to Arif Habib Limited

1. Air Link Communication Ltd (AIRLINK)

Air Link has rapidly evolved from a smartphone distributor into one of Pakistan’s most dynamic technology companies. With strong earnings growth ahead, expanding product lines, and a strategic push toward exports, Air Link leads AHL’s list with the highest total return potential for FY26.

Recent Performance

Rising affordability, higher smartphone penetration, and a growing population are fueling domestic demand, giving Air Link a solid tailwind. But the real story lies in what comes next.

The company has expanded its local assembly capabilities, including the production of Xiaomi TVs, which adds a new revenue stream and diversifies its product mix beyond smartphones.

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Looking ahead to FY26, Air Link plans to export one million mobile phone units, with shipments expected to begin within the year. This new export vertical is projected to lift FY26 earnings to PKR 26.2 per share, positioning the company for outsized growth.

With a 4-year forward earnings CAGR of 39 percent, Air Link is firmly in growth-stock territory. At the same time, it remains undervalued, trading at a forward PE of just 5.9x for FY26 and 4.5x for FY27, compared to its 3-year historical average of 8.7x.

Margins are also set to expand, with net margins expected to rise to 5.03 percent in FY26, up from just 3.39 percent the previous year.

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Price Target and Return Potential

Arif Habib Limited has set a June 2026 target price of PKR 263.3 for Air Link, implying a total return of 78.7 percent, the highest in the top five. This includes a projected dividend of PKR 10.5 per share, giving the stock a dividend yield of nearly 7 percent. With aggressive expansion, strong earnings momentum, and favorable valuation, Air Link stands out as the most exciting opportunity among AHL’s top FY26 picks.

⚠️ 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 →