⚡ Flash Summary

LSE Ventures Limited (LSEVL) reported its annual results for the year ended June 30, 2025. The company focused on enhancing shareholder wealth and strategic partnerships, undertaking corporate actions to strengthen its capital base. Key highlights include a stock split to enhance liquidity and a plan to issue right shares to raise PKR 200 million for portfolio diversification into SPAC and private equity investments. While facing a volatile economic backdrop, LSEVL maintained stakes in key national entities and conducted a self-evaluation focusing on business opportunities and risk management, demonstrating strategic agility.

📌 Key Takeaways

• ✅ LSEVL successfully adapted to a shifting market landscape in FY 2025.
• 🤝 Strategic partnerships and sound investment decisions were key priorities.
• ➗ A stock split (PKR 10/- to PKR 5/-) was executed to double outstanding shares and enhance liquidity.
• 💰 A plan to issue 40,000,000 Right Shares at PKR 5/- each aims to raise PKR 200 million.
• 🎯 Funds are earmarked for portfolio diversification into SPAC and private equity markets.
• 🏛️ Significant stakes maintained in key national entities like CDC, NCCPL, PMEX, and PACRA.
• 📈 KSE-100 Index registered a phenomenal growth of 57.79%, surging from 78,824 to 124,379 points.
• 🏛️ Board approved the termination of the Mutual Buy Out Agreement (MBO) with immediate effect on June 30, 2025.
• 👍 Directors have recommended a final cash dividend of Rs. 0.50 per share for FY 2025.
• 🧑‍💼 Existing auditors, KRESTON Hyder Bhimjee & Co., are retiring, and shareholders will vote on the new auditor.
• 📊 Operating Income increased to 466,265 (in thousands) from 285,582 (in thousands) in 2024.
• ✨ Net Profit increased to 208,553 (in thousands) from 187,107 (in thousands) in 2024.
• 💸 EPS increased to 1.16 from 1.04 in 2024.
• 🌍 Pakistan’s economy maintained an upward trajectory with 2.68% GDP growth.

🎯 Investment Thesis

HOLD. LSEVL exhibits strategic agility and a focus on enhancing shareholder wealth, but the negative operating cash flow and counterparty risks warrant caution. The proposed capital raising through Right Shares could provide future growth opportunities but may also create short-term dilution. The company’s significant stakes in national entities provide stability. A price target cannot be determined without further insights, but current information leads to the maintenance of a ‘Hold’ rating.