⚡ Flash Summary

Pakistan Capital Market Fund’s financial results for the quarter ended September 30, 2025, show a significant increase in net income. The fund’s net assets increased substantially compared to the previous period, driven primarily by unrealized appreciation on investments. This growth also reflects increased unit issuances during the quarter. However, earnings per unit (EPU) calculation was deemed impracticable by management.

📌 Key Takeaways

• ✅ Net assets increased to PKR 961.236 million as of September 30, 2025, compared to PKR 749.765 million as of June 30, 2025.
• 📈 Total income soared to PKR 189.692 million for the quarter ended September 30, 2025, from PKR 22.720 million in the same period last year.
• 💰 Capital gains on the sale of investments reached PKR 14.106 million, against a loss of PKR 9.044 million in the prior year.
• 🧾 Dividend income decreased from PKR 16.067 million to PKR 7.869 million YoY.
• 🏦 Profit on bank deposits declined from PKR 7.234 million to PKR 5.840 million YoY.
• 💹 Unrealized appreciation on investments was a major driver, contributing PKR 161.852 million to total income.
• expenses increased to PKR 8.774 million, up from PKR 6.423 million in the prior year.
• 🚀 Net income for the period stood at PKR 180.918 million, significantly higher than the PKR 16.297 million reported last year.
• 💵 Total number of units in issue increased to 32,573,748 from 31,505,019.
• 📊 Net asset value (NAV) per unit increased to PKR 29.51 from PKR 23.80 since June 30, 2025.
• 💸 Issuance of units generated PKR 87.466 million, while payments on redemption totaled PKR (56.913) million.
• 🏦 Cash and cash equivalents at the end of the period increased to PKR 308.297 million from PKR 222.058 million.
• 🚫 Earnings per unit (EPU) were not disclosed due to the impracticality of calculating the weighted average number of units.

🎯 Investment Thesis

Based on the strong financial performance, particularly the substantial increase in net income and NAV per unit, a BUY recommendation is justified. The fund’s exposure to unrealized gains suggests potential for further appreciation if market conditions remain favorable. The increase in unit issuances also indicates growing investor confidence. The price target is set at PKR 33.00 per unit, reflecting an anticipated continuation of the fund’s positive performance trajectory. Time horizon is MEDIUM_TERM, expecting the fund to sustain its growth momentum.