⚡ Flash Summary

First Equity Modaraba reported a loss of Rs (1.76) million for the quarter ended September 30, 2025, an improvement compared to the Rs (3.09) million loss in the same period last year. Loss per certificate improved to Rupees (0.034) from Rupees (0.059) year-over-year. The directors are awaiting an opportune time to divest investments in listed companies, expecting capital gains. The breakup value per certificate stood at Rupees 12.29. The company anticipates better economic conditions and a bullish capital market trend once political uncertainty settles.

📌 Key Takeaways

• 📉 Loss for the quarter decreased to Rs (1.76) million from Rs (3.09) million YoY.
• 📈 Loss per certificate improved to Rs (0.034) from Rs (0.059) YoY.
• 📊 Breakup value per certificate is Rs 12.29.
• 等待 Disinvestment in listed companies is planned when market conditions improve.
• 🔮 Expectation of improved economic conditions post-political stability.
• Bullish trend in capital markets is anticipated.
• 🔍 Management fee and profit distribution to be determined at year-end.
• 📜 Compliance with IAS-34 for interim financial reporting.
• 🏦 Capital reserve is Rs 295.43 million.
• 💰 Revenue reserve is Rs (246.29) million.
• 🔒 Investments in unlisted securities remain at Rs 72.12 million.
• Subsidiary Equity Textiles Limited is valued at Rs 350 million.
• 🏢 Total assets are Rs 698.99 million.
• 📉 Negative earnings per share of Rs (0.034).

🎯 Investment Thesis

HOLD. First Equity Modaraba’s improved financial performance and strategic focus on disinvestment warrant a hold recommendation. While losses have reduced, significant returns are contingent on favorable market conditions and the successful execution of investment strategies. A higher valuation is possible upon successful disinvestment and improved economic stability. Wait for the next quarterly report for any significant change.