⚡ Flash Summary

Javedan Corporation Limited’s financial results for Q1 2025 show a mixed performance. Revenue decreased significantly from PKR 3,130.81 million to PKR 1,698.22 million compared to the same period last year. However, the company managed to maintain a comparable gross profit of PKR 1,318.71 million. Net profit experienced a notable decline, falling from PKR 909.86 million in Q1 2024 to PKR 724.48 million in the current quarter, impacting earnings per share which decreased from PKR 2.39 to PKR 1.90.

📌 Key Takeaways

• 📉 Revenue declined by 45.7% year-over-year, from PKR 3,130.81 million to PKR 1,698.22 million.
• 📊 Gross profit remained relatively stable at PKR 1,318.71 million compared to PKR 1,290.62 million in the prior year.
• 📉 Net profit decreased by 20.37% from PKR 909.86 million to PKR 724.48 million.
• 📉 Basic and diluted EPS both decreased from PKR 2.39 to PKR 1.90.
• ❌ No cash dividend, bonus shares, or right shares were declared for the quarter.
• 🏢 Administrative expenses increased significantly from PKR 144.07 million to PKR 235.92 million.
• 💰 Finance costs decreased from PKR 44.41 million to PKR 12.73 million.
• ⬆️ Other income increased from PKR 11.32 million to PKR 41.76 million.
• ⬆️ Taxation increased from PKR 183.58 million to PKR 356.39 million.
• 🏦 Cash and bank balances increased from PKR 46.05 million to PKR 143.62 million.
• 🚧 Development properties decreased from PKR 14,806.95 million to PKR 14,953.36 million.
• ⬇️ Long-term investments increased from PKR 8,452.27 million to PKR 9,183.88 million.
• 🧾 Trade debts decreased slightly from PKR 2,548.57 million to PKR 2,484.70 million.

🎯 Investment Thesis

HOLD. Given the decrease in revenue and net profit, coupled with increased expenses, a HOLD recommendation is warranted. While the company maintains a relatively stable gross profit, concerns over decreasing earnings and increasing operational costs require further monitoring before considering a BUY. A price target cannot be accurately determined without more information. I would need to look at external factors and market multipliers. I would need more details on their plans before considering a buy.