⚡ Flash Summary

First Tri-Star Modaraba’s financial results for the quarter ended September 30, 2025, show a mixed performance. Revenue from academic activities decreased significantly compared to the same period last year, while operating profit increased due to other income. The company reported a higher profit before taxation, and earnings per certificate also increased. The statement of financial position shows an increase in total assets and equity compared to the previous quarter.

📌 Key Takeaways

• Revenue from academic activities decreased from Rs 22,267,261 in September 2024 to Rs 15,270,000 in September 2025 📉.
• Administrative expenses decreased from Rs 10,000,591 to Rs 8,433,175 📉.
• Other income increased significantly from Rs 6,471 to Rs 14,058,204 🚀.
• Financial charges increased from Rs 392,974 to Rs 736,745 📈.
• Operating profit increased from Rs 11,880,167 to Rs 20,158,284 🚀.
• Profit before levy and taxation increased from Rs 11,880,167 to Rs 20,158,284 🚀.
• Levy increased significantly from Rs 277,819 to Rs 2,299,606 📈.
• Profit before taxation increased from Rs 11,602,348 to Rs 17,858,679 🚀.
• Earnings per certificate increased from Rs 0.55 to Rs 0.84 🚀.
• Total Assets increased from Rs 586,596,073 to Rs 607,924,497 🚀.
• Cash and bank balances increased significantly from Rs 2,993,562 to Rs 25,432,670 🚀.
• Total certificate holders’ equity increased from Rs 353,377,679 to Rs 371,236,358 🚀.
• No cash dividend/Bonus/Rights/Any other entitlement was recommended by the board 🕳️.
• Cash generated from operating activities decreased from Rs 15,564,257 to Rs 8,380,904 📉.
• Cash and cash equivalent at the end of the year increased from Rs 15,116,886 to Rs 25,432,670 🚀.

🎯 Investment Thesis

Given the mixed financial performance, with decreased revenue growth offset by increased profitability and a stronger balance sheet, a HOLD recommendation is appropriate. The price target rationale is based on the potential for earnings growth driven by other income sources, but tempered by concerns over core revenue decline. A price target of Rs 10.00 is set, assuming a modest multiple on earnings. The time horizon is MEDIUM_TERM, as the company’s strategy needs to be further analyzed.