⚡ Flash Summary

First Al-Noor Modaraba (FANM) reported its financials for FY 2024-2025. The company’s revenue from trading operations significantly improved, generating Rs. 15.818 million compared to a loss of Rs. 6.758 million in the same period last year. Revenue from investments decreased by approximately 23%, amounting to Rs. 25.648 million compared to Rs. 33.256 million previously, mainly due to a 64% reduction in profit from investments. However, the gain on the sale of securities increased by over 136%. FANM contributed over 55% of its profit before tax to the national exchequer, demonstrating its commitment to the local economy.

📌 Key Takeaways

• ✅ Established in 1992, FANM has 30 years of successful business operations.
• 🤝 FANM engages in business segments including Ijarah, Diminishing Musharika, and commodity trading.
• 📉 Revenue from Investments decreased by 23% to Rs. 25.648 million.
• 📈 Gain on sale of securities increased by over 136%.
• 💼 Diminishing Musharika business generated Rs. 2.197 million.
• 💰 Total Assets increased from 269.12 in 2024 to 274.86 in 2025.
• 📊 Current Assets decreased from 42.24 in 2024 to 21.53 in 2025.
• liabilities increased from 13.18 in 2024 to 15.82 in 2025.
• 🏦 Paid-up Capital remained constant at Rs. 231.00 million.
• ✨ Reserves slightly increased from 77.36 in 2024 to 77.85 in 2025.
• 💵 Gross Revenue increased significantly from 33.75 in 2024 to 46.29 in 2025.
• 📈 Net Profit increased substantially from 0.39 in 2024 to 2.41 in 2025.
• 💸 Earning per certificate increased from 0.02 in 2024 to 0.1 in 2025.

🎯 Investment Thesis

Given FANM’s fluctuating financial performance and inherent market risks, a HOLD recommendation seems appropriate. The positive shift in revenue is encouraging, but the decrease in current assets and other potential risk factors require careful consideration. A price target cannot be accurately determined without further fundamental analysis, but a neutral stance is justified until there is more evidence of sustained growth and stability.