⚡ Flash Summary

First Capital Equities Limited (FCEL) reported a significant turnaround in its financial performance for the year ended June 30, 2025. The company achieved a substantial increase in profit after tax, driven primarily by unrealized gains on investments. The shift in business activity towards real estate and the potential settlement of outstanding loans are expected to further improve operational and financial performance. However, the company has surrendered it’s TREC (trading rights entitlement certificate), and will change to a real estate company.

📌 Key Takeaways

• 📈 Profit after tax surged by 859% to Rs. 170.90 million in 2025, compared to Rs. 17.80 million in 2024.
• 📊 Continuing operations profit increased by 810% to Rs. 171.36 million from Rs. 18.82 million in the previous year.
• 💸 Earnings per share (EPS) jumped by 857% to Rs. 1.207 in 2025 from Rs. 0.126 in 2024.
• 💰 The company’s revenue increased substantially due to unrealized gains on investments.
• 🏢 FCEL is transitioning its principal business activity from stock brokerage to real estate.
• 🤝 Management is optimistic about the impact of this shift on the company’s performance.
• 🏦 FCEL is in the process of negotiating loan facilities and aims to settle outstanding dues with UBL.
• 📉 Significant reduction in stock-in-trade, reflecting the shift in business operations.
• ⬇️ Large drop in the current portion of long-term financing indicates liability settlement.
• ⚠️ Investment in listed companies is subject to market and operational risks.
• 🌍 The company faces risks including market conditions, law and order situation, natural disasters, currency risk, and political instability in Pakistan.
• 🧾 The company’s disclosure states the possible variance between the actual and estimated future earnings.
• 📊The company’s total assets decreased from 1,361.9 to 1,237.2 (millions of rupees) from 2024 to 2025.

🎯 Investment Thesis

Based on the available information, a HOLD recommendation is appropriate for FCEL. While the company has demonstrated a remarkable turnaround in financial performance, the sustainability of these gains remains uncertain. The shift in business strategy towards real estate presents both opportunities and risks. The company may be attractive to investors with a strong risk tolerance. There is no provided price target, as there is too little information to make an informed recommendation.