⚡ Flash Summary

AKD Securities Limited (AKDSL) reported a substantial increase in profitability for the quarter ended September 30, 2025. Profit before income and final tax surged to Rs. 2,883.64 million, a significant jump from Rs. 808.15 million in the corresponding quarter of the previous year. This remarkable growth was primarily driven by a 129% year-on-year increase in brokerage income, which reached Rs. 756 million. Earnings per share also witnessed a substantial increase, rising to Rs. 4.57 from Rs. 1.11 in the previous year, indicating improved operational efficiency and market volumes.

📌 Key Takeaways

• 🚀 Profit before income and tax soared to Rs. 2,883.64 million, up from Rs. 808.15 million YoY.
• 💰 Brokerage income surged by 129% YoY, reaching Rs. 756 million.
• 📈 Earnings per share (EPS) increased significantly to Rs. 4.57 from Rs. 1.11 YoY.
• 📊 Equity brokerage remains the primary revenue component.
• 🌍 Commodities, foreign exchange, and fixed income divisions also showed substantial growth.
• Volume at PSX substantially increased due to improved investor sentiment.
• ✨ KSE100 provided a 31.7% QoQ return, highlighting a strong equity market performance.
• 📉 Foreign investors remained net sellers, reducing equity exposure by US$132 million.
• 💹 Mutual Funds increased exposure by US$206.1 million.
• 💲 SBP’s FX reserves declined by US$331 million due to Euro bond payments.
• 🏦 Central Bank maintained policy rate at 11%.
• ⛽ Cement sector domestic offtakes increased by 20%YoY.
• 🚗 Automobile sales surged 40%YoY, fueled by lower interest rates and improved supply.
• 🌾 Wheat and corn prices fell 13% and 2%YoY, respectively.

🎯 Investment Thesis

Based on the strong financial performance, specifically the substantial increase in profitability and brokerage income, I recommend a BUY rating for AKD Securities Limited. The company’s ability to capitalize on improved market volumes and investor sentiment positions it favorably for future growth. The price target is Rs. 50, based on an assumed P/E ratio of 11 applied to the EPS of Rs. 4.57. This price is reasonable given the recent growth. The time horizon is medium-term (6-12 months), anticipating continued positive market trends and sustained operational efficiency.