{"id":10596,"date":"2025-07-28T11:02:43","date_gmt":"2025-07-28T06:02:43","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=10596"},"modified":"2025-07-28T11:02:45","modified_gmt":"2025-07-28T06:02:45","slug":"agp-limited-earnings-strong-but-seasonal-dip-ahead","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/agp-limited-earnings-strong-but-seasonal-dip-ahead\/","title":{"rendered":"AGP Limited: Earnings Strong, But Seasonal Dip Ahead"},"content":{"rendered":"\n

AGP Limited (AGP<\/a>)<\/strong>, one of Pakistan\u2019s top pharmaceutical companies, is expected to show strong profits for the second quarter of 2025 (April\u2013June), but a slight dip compared to the first quarter. Here\u2019s what investors and followers should know:<\/p>\n\n\n\n

2QCY25 earnings snapshot<\/h2>\n\n\n\n

AGP is expected to post a profit of Rs725 million<\/strong> in the second quarter, up 90%<\/strong> compared to the same period last year. This means earnings per share (EPS)<\/strong> will likely come in at Rs2.59<\/strong>.<\/p>\n\n\n\n

What\u2019s driving the growth?<\/h2>\n\n\n\n
    \n
  • Higher medicine prices<\/strong><\/li>\n\n\n\n
  • More product sales<\/strong><\/li>\n\n\n\n
  • Lower interest costs<\/strong> (thanks to falling interest rates and reduced borrowing costs)<\/li>\n<\/ul>\n\n\n\n

    Even though overall sales are expected to be around Rs6.3 billion<\/strong> (+10% YoY), they\u2019ll likely be down 12% from the previous quarter<\/strong>, which is normal due to slower seasonal demand during this part of the year.<\/p>\n\n\n\n

    Margins & costs<\/h2>\n\n\n\n
      \n
    • Gross margins<\/strong> (how much money the company keeps after subtracting production costs) are expected to rise slightly YoY<\/strong>.<\/li>\n\n\n\n
    • Finance costs are expected to drop 46% YoY<\/strong>, giving AGP more breathing room to focus on growth.<\/li>\n\n\n\n
    • No cash dividend is expected this quarter, which is in line with AGP\u2019s usual payout pattern.<\/li>\n<\/ul>\n\n\n\n

      Full-year expectations look bright<\/h2>\n\n\n\n

      AGP is forecasted to earn:<\/p>\n\n\n\n

        \n
      • Rs31 billion<\/strong> in sales for the full year 2025, up 24%<\/strong> from 2024<\/li>\n\n\n\n
      • Rs14.18 EPS<\/strong>, up from Rs9.54<\/strong> last year<\/li>\n\n\n\n
      • Rs6 per share in dividends<\/strong> for the full year<\/li>\n<\/ul>\n\n\n\n

        Even with a seasonal slowdown, the company\u2019s long-term growth trend is strong, thanks to consistent product demand and pricing adjustments.<\/p>\n\n\n\n

        Attractive valuation = buying opportunity?<\/h3>\n\n\n\n

        Despite AGP\u2019s solid fundamentals, its stock hasn\u2019t kept up with the KSE-100 index this year, up just 12.9% vs 20.5%<\/strong> for the broader market. This underperformance might make AGP stock an attractive buy<\/strong>, especially since it\u2019s trading below its usual valuation.<\/p>\n\n\n\n

        With a 2025 price-to-earnings (P\/E) ratio<\/strong> of 13.6x<\/strong>, AGP is cheaper than many peers in the pharma space, even though it\u2019s showing faster profit growth<\/strong>. <\/p>\n\n\n\n

        AGP continues to deliver healthy growth, strong profit margins, and promising full-year numbers. While the April\u2013June quarter may look slightly weaker due to seasonality, the big picture remains positive. For long-term investors, this could be a good moment to take a closer look at AGP.<\/p>\n\n\n\n

        Source: JS Global Capital Limited<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

        AGP Limited (AGP), one of Pakistan\u2019s top pharmaceutical companies, is expected to show strong profits for the second quarter of 2025 (April\u2013June), but a slight dip compared to the first quarter. Here\u2019s what investors and followers should know:<\/p>\n","protected":false},"author":9252,"featured_media":6468,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,138],"tags":[200],"class_list":["post-10596","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-financials","tag-agp"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/AGP-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/AGP-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/AGP-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/AGP-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10596","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=10596"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10596\/revisions"}],"predecessor-version":[{"id":10597,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10596\/revisions\/10597"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6468"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=10596"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=10596"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=10596"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}