PTCL Could Reach Rs62 Per Share After Merger as Analysts See Strong Growth Ahead

Pakistan Telecommunication Company Limited (PTCL) may be heading toward a major jump in share price. Analysts now expect strong growth after the merger as PTCL could reach Rs62 per share within the next 12 months. This target shows an increase of almost 58% from its current price of around Rs39.

This optimistic outlook comes from Chase Securities, which believes PTCL could become a multi-bagger in the next three to five years. The key factor behind this view is the upcoming merger of PTCL with Telenor Pakistan, which has already been approved.

PTCL Could Reach Rs62 Per Share After Merger as Analysts See Strong Growth Ahead

Chase Securities said that PTCL’s purchase of Telenor Pakistan was completed at a very attractive valuation. The company paid less than the value of Telenor Pakistan’s yearly revenue. Analysts believe this gives PTCL a very strong financial advantage.

The merger also reduces competition in the telecom market. With fewer rivals, PTCL can work on stabilizing and improving its earnings. Analysts expect better ARPU (average revenue per user), lower operating costs, and eventually a reduction in finance costs.

Chase Securities shared detailed estimates in its report. After removing one-off expenses and adding Telenor Pakistan’s earnings, PTCL is expected to post annual profits between Rs19 billion and Rs32 billion. This equals around Rs3.7 to Rs6.3 per share. This is also a major improvement from PTCL’s past performance, where earnings were often dragged down by problems linked to UBank and its credit losses.

The merger brings several long-term advantages. PTCL’s mobile market share will jump from 14% to 36%. This will give the new entity better scale and more control over pricing. It will also allow the company to optimize its network and cut unnecessary costs.

Together, PTCL and Telenor Pakistan own about 24,000 telecom towers. Almost 7,000 of these towers overlap. These redundant sites can be shut down. Chase Securities estimates that this move alone could save PTCL up to Rs21 billion each year.

There will also be savings from combining IT systems, business support services, distribution networks, and procurement. These changes will lower the cost per GB and increase PTCL’s EBITDA margins over time.

See Also: PTCL Races to Acquire Telenor Ahead of 5G Spectrum Auction

The valuation story also strengthens the bullish case. After the merger, PTCL’s equity value stands at about $707 million. This equals roughly $10 per subscriber. In comparison, telecom companies in Asia and Africa trade between $42 and $623 per subscriber. This shows PTCL is highly undervalued.

Chase Securities expects mobile ARPU to rise steadily. It may reach Rs525 by 2030. Growth in 4G data usage and fiber-to-home (FTTH) services will also support this trend.

However, analysts warn that execution is important. Delays in network consolidation, IT integration, and distribution merger could slow progress. Regulatory hurdles and competition from new technologies, like LEO satellite internet, also pose risks.

Still, PTCL now appears ready to shift from recovery to strong growth. EBITDA margins could reach 40% by late 2025. If the company delivers on its plans, investors may see a major re-rating of the stock.