⚡ Flash Summary

MUBT has reported a loss for the quarter ended September 30, 2025, contrasting with a smaller loss in the same period last year. The company’s operating loss is primarily driven by administrative and general expenses. Despite a slight increase in other income, the company’s overall profitability has declined, leading to a negative EPS. The balance sheet shows a marginal decrease in shareholders’ equity compared to the previous quarter, while cash and bank balances have significantly decreased.

📌 Key Takeaways

• ❌ MUBT reported a net loss after taxation of PKR (985.434) million for the quarter ended September 30, 2025, compared to a loss of PKR (390.534) million in the same quarter last year.
• 📉 Loss per share (LPS) has worsened to PKR (0.18) compared to PKR (0.07) in the corresponding quarter of the previous year.
• ⚠️ Operating loss stood at PKR (3.231) million for the quarter ended September 30, 2025, unchanged from PKR (2.669) million in the same quarter last year.
• ⬆️ Other income increased slightly from PKR 2.532 million to PKR 2.496 million.
• 💸 Administrative and general expenses remained constant at PKR 3.231 million.
• 🏦 Cash and bank balances decreased significantly to PKR 350.875 million from PKR 1.198 million in June 2025.
• 📉 Total assets decreased marginally from PKR 275.153 million to PKR 274.447 million.
• 📉 Shareholder’s equity decreased from PKR 219.557 million to PKR 218.571 million.
• ⚠️ The company faces a substantial unappropriated loss of PKR (87.928) million.
• ✅ Surplus on revaluation of property is PKR 252.499 million.
• 👍 Long-term deposits remain stable at PKR 2.508 million.
• 📊 No sales/processing receipts reported for the quarter.
• ➖ No cost of goods sold reported for the quarter.

🎯 Investment Thesis

SELL. The company’s continued losses, decreasing cash reserves, and lack of revenue generation make it a risky investment. The absence of positive earnings and negative EPS do not provide a basis for a BUY or HOLD recommendation. Price target: Significantly lower than current levels, given the lack of profitability. Time horizon: Short to medium term, as the company needs to demonstrate significant improvements to justify a change in recommendation.