Ghandhara Automobiles Ltd (GAL): Upward Revision in Earnings, 3Q Preliminary Estimates - By Sherman Research
Mar 27 2025
Sherman Securities
- Following our January 14, 2025, report, "Breaking Monopolies: GAL Introduces JAC T9 Hunter“, we are revising our earnings forecast upward by 34-62% for FY25-26 and raising our target price to Rs705 per share, driven by the T9 Hunter’s strong market response.
- We maintain a “Buy” stance, as the stock is currently trading at an attractive FY26 P/E of 5.1x.
- Our earlier assessment of the T9 Hunter (in pickup market) as a monopoly breaker has proven accurate as evidenced by its overwhelming market response. T9 Hunter’s appealing aesthetics and competitive pricing has driven exceptional demand, leading the company to pause bookings and increase price by 7.7% after just two weeks of launch. The strong demand appears sustainable, with current delivery timelines extending to Sep’25 coupled with lower-cost parts compared to competitors.
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