⚡ Flash Summary

Javedan Corporation Limited’s Q1 2025 report reveals a mixed performance. Revenue decreased significantly to PKR 1.698 billion compared to PKR 3.130 billion in the same period last year. Profit after tax also declined to PKR 724 million from PKR 909 million year over year. The decrease in revenue is attributed to sales and profit of PKR 1,698 million compared to PKR 3,130 million, respectively, year over year.

📌 Key Takeaways

• 📉 Revenue decreased to PKR 1.698 billion in Q1 2025 from PKR 3.130 billion in Q1 2024.
• 📉 Profit after tax declined to PKR 724 million from PKR 909 million year-over-year.
• 😓 EPS decreased to Rs. 1.90 per share compared to Rs. 2.39 per share in the corresponding period.
• 🏢 Naya Nazimabad Business Enclave continues to contribute to revenue.
• 🤝 Strategic partnership with Meezan Bank to provide housing finance.
• ⬆️ Administrative costs increased to PKR 235 million from PKR 144 million year-over-year.
• 💰 Other income increased to PKR 41 million.
• 💪 Strong performance and growing membership of Naya Nazimabad Gymkhana.
• 💼 Consolidated sales for the period stood at PKR 1.806 billion.
• 🏦 Consolidated profit after tax was PKR 713 million.
• 🏘️ Focus on lifestyle and commercial segments with continued demand for commercial properties.
• 🤝 Government’s Tax Credit on Housing Finance and stable interest rates are positive factors.
• ✅ Expectation of steady revenue growth and long-term value creation for shareholders.
• 💲 Investments in long term projects and subsidiaries remain consistent with previous reports.

🎯 Investment Thesis

HOLD. The company faces challenges in revenue and profit growth but has positive developments such as the Naya Nazimabad project and strategic partnerships. I would recommend holding the stock for now. We would need more information to determine an appropriate price target. Therefore, wait for the annual report to make a proper informed decision. The time horizon for reassessment is medium term.