{"id":11349,"date":"2025-08-22T15:56:24","date_gmt":"2025-08-22T10:56:24","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=11349"},"modified":"2025-08-22T16:04:07","modified_gmt":"2025-08-22T11:04:07","slug":"agp-riding-the-pharma-wave-but-facing-near-term-pressure","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/agp-riding-the-pharma-wave-but-facing-near-term-pressure\/","title":{"rendered":"AGP Limited (AGP): Riding the Pharma Wave, But Facing Near-Term Pressure"},"content":{"rendered":"\n

Pakistan\u2019s pharmaceutical industry is having a good run. Earnings across the sector are expected to rise sharply, up more than 100% compared to last year. The main reasons? Deregulation of non-essential medicines, falling prices of key raw materials (APIs), and a seasonal bump in sales.<\/p>\n\n\n\n

But when we zoom in on AGP Limited (AGP<\/a>)<\/strong>, the story gets a bit mixed.<\/p>\n\n\n\n

AGP\u2019s performance in 2Q CY25<\/h2>\n\n\n\n
    \n
  • Earnings (EPS):<\/strong> PKR 2.32 per share<\/li>\n\n\n\n
  • That\u2019s 70% higher than last year<\/strong>, but 24% lower than last quarter<\/strong>.<\/li>\n\n\n\n
  • Profit after tax: PKR 651 million<\/li>\n<\/ul>\n\n\n\n

    So, while AGP looks stronger than last year, its recent performance dipped compared to the previous quarter.<\/p>\n\n\n\n

    Why the dip?<\/h2>\n\n\n\n
      \n
    1. Seasonal slowdown<\/strong>: Sales fell by about 9% compared to the last quarter.<\/li>\n\n\n\n
    2. No major price hikes<\/strong>: Unlike peers such as Glaxo, AGP didn\u2019t significantly raise prices of its non-essential medicines.<\/li>\n\n\n\n
    3. Higher finance costs<\/strong>: Rising borrowing expenses put extra pressure on profits.<\/li>\n<\/ol>\n\n\n\n

      Margins still strong<\/h2>\n\n\n\n

      Despite these challenges, AGP\u2019s gross margins remain very healthy at 55%<\/strong>, which is higher than most peers. This shows that AGP is still efficient at turning sales into profit, even with some short-term bumps.<\/p>\n\n\n\n

      What\u2019s next?<\/h2>\n\n\n\n

      The deregulation of non-essential medicines gives AGP a lot more room to grow in the future. With more freedom to set prices and launch new products, the company has strong long-term potential. However, in the short term, earnings might stay bumpy because of seasonal demand shifts and high costs.<\/p>\n\n\n\n

      AGP is still a strong pharma player with solid margins and long-term opportunities.<\/strong> But compared to other pharma names, its short-term results aren\u2019t as exciting this quarter.<\/p>\n\n\n\n

      Source: Optimus Capital Management<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

      Pakistan\u2019s pharmaceutical industry is having a good run. Earnings across the sector are expected to rise sharply, up more than 100% compared to last year. The main reasons? Deregulation of non-essential medicines, falling prices of key raw materials (APIs), and a seasonal bump in sales.<\/p>\n","protected":false},"author":11,"featured_media":6468,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,138],"tags":[200],"class_list":["post-11349","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\/11349","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\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=11349"}],"version-history":[{"count":2,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11349\/revisions"}],"predecessor-version":[{"id":11353,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11349\/revisions\/11353"}],"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=11349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=11349"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=11349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}