⚡ Flash Summary
Grays Leasing Limited (GRYL) reported a significant decrease in business transactions for the period ended September 30, 2025, with Rupees 4.790 million compared to Rupees 12.775 million in the same period of 2024. Profit before and after tax also declined to Rupees 1.631 million and Rupees 1.341 million, respectively, from Rupees 2.865 million and Rupees 2.378 million in 2024. Net investment decreased slightly to Rupees 431.463 million, and the company’s equity stood at Rupees 77.925 million. The reduction in KIBOR rates and government policies on used car imports present potential growth opportunities, although challenges remain due to limited awareness and geographic presence.
📌 Key Takeaways
- 📉 Business volume decreased significantly from ₹12.775 million to ₹4.790 million.
- ⚠️ Profit before tax declined from ₹2.865 million to ₹1.631 million.
- ⚠️ Profit after tax decreased from ₹2.378 million to ₹1.341 million.
- 📉 Net investment in lease finance slightly decreased to ₹431.463 million.
- ✅ Equity stands at ₹77.925 million.
- 📉 KIBOR rate reduced from 22% to 11-12%, making financing more attractive.💰
- 🚗 Government policy allows import of used cars, potentially increasing leasing demand.📈
- 🏦 Banking sector restrictions on vehicle financing (max ₹3 million) could boost leasing demand.🏦
- 🚧 Limited awareness of NBFCs among SMEs remains a challenge.
- 🌍 Narrow geographic presence of leasing companies is still a hurdle.📍
- 📊 Profit per share decreased from ₹0.111 to ₹0.062.📉
- 🤝 Thanked clients and appreciated employees’ efforts.🙌
- 🏢 Registered office is in Lahore.📍
- 🏦 Bankers include Meezan Bank Limited and The Bank of Punjab.🏦
🎯 Investment Thesis
Given the decline in financial performance and the mixed outlook with potential growth opportunities offset by existing challenges, a HOLD recommendation is appropriate. The company needs to demonstrate improved operational efficiency and capitalize on the changing regulatory environment before a more positive outlook can be justified. A price target cannot be accurately set without a detailed valuation model and further information. Time horizon is MEDIUM_TERM, pending signs of turnaround.
Disclaimer: AI-generated analysis. Not financial advice.