Interloop set to hit Rs108/Share

November 04, 2025 (MLN): Interloop Limited (PSX: ILP) is projected to reach a target price of Rs108 per share by June 2026, offering an upside potential of 33% from the current level, with an earnings per share (EPS) of Rs81.00.

Ismail Iqbal Securities Limited (IISL) has reinitiated coverage on Interloop Limited (PSX: ILP) with a ‘BUY’ recommendation, setting a target price of Rs108/share for June 2026.

Interloop’s current earnings per share (EPS) stand at Rs81.00, and the brokerage expects profits to strengthen over the next two fiscal years, driven by margin recovery, high-value segment expansion and growing export demand.

According to IISL’s report, Interloop remains one of Pakistan’s largest textile exporters and a global leader in socks manufacturing, supplying to top international brands including Nike, Adidas, Puma, and H&M.

The company’s vertically integrated operations, expanding denim and apparel capacities, and sustainability-driven initiatives continue to position it as a standout performer in the textile industry.

The forecasts consistent earnings growth through FY26–FY27, supported by operational efficiencies, reduced energy costs, and steady export recovery.

IISL projects further EPS acceleration with the full ramp-up of Hosiery Plant 6, which has enhanced capacity by around 25%, and margin improvements across the denim and apparel divisions.

The Hosiery segment remains ILP’s primary profit driver, while the Denim division turned profitable in FY25 amid better utilization and cost controls. The Apparel segment is expected to breakeven by FY27, supported by new production lines and efficiency gains.

Interloop’s diversified export base 45% to the U.S., 45% to Europe, and 10% to Asia and other regions reduces geographic risk.

Strategic acquisitions, including Top Circle Hosiery Mills in the U.S. and Bonnie Doon in Europe, have expanded ILP’s access to premium markets and strengthened its global retail presence.

Interloop achieved LEED Platinum certification for its Apparel Plant 2 and maintains 100% compliance under the Zero Discharge of Hazardous Chemicals program.

Its membership in Nike’s Supplier Sustainability Council among only 15 global suppliers emphasizes its ESG leadership and operational excellence.

IISL noted that the PKR’s relative stability amid a globally weaker dollar may temporarily compress currency gains, but ILP’s export-led model and vertical integration provide a natural hedge. With over 90% of revenues from exports, the company remains well-positioned to benefit from gradual rupee depreciation and sustained global demand.

Key risks highlighted include GSP+ non-renewal, U.S. tariff uncertainty, and execution delays in new capacity ramp-up. Nevertheless, IISL believes ILP’s diversified export portfolio, efficiency gains, and strong client base provide resilience against external pressures.

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