⚡ Flash Summary

Next Capital Limited’s financial results for the year ended June 30, 2025, reveal a mixed performance. The company experienced a significant increase in operating revenue, but also faced challenges reflected in fluctuations in investment gains/losses and operating expenses. Despite these headwinds, Next Capital achieved a net profit after income tax, a substantial turnaround from the prior year’s net loss. The company has improved its cash position, and strengthened its equity position.

📌 Key Takeaways

• 📈 Operating revenue increased significantly to PKR 287.56 million, up from PKR 166.55 million in 2024.
• 📉 Capital loss on sale of investments was PKR 2.67 million in 2025, compared to a gain of PKR 47.36 million in 2024.
• ⚠️ Operating expenses rose to PKR 147.96 million, from PKR 108.63 million in the previous year.
• 🏦 Administrative expenses decreased slightly to PKR 132.60 million from PKR 134.83 million.
• ✅ The company reversed PKR 402,370 against loss allowances, contrasting with PKR 10.05 million in 2024.
• 💸 Finance costs decreased to PKR 26.85 million compared to PKR 36.26 million year over year.
• ✨ Other income increased to PKR 64.81 million from PKR 52.56 million.
• 💰 Income before income tax and levy was PKR 38.13 million, a significant improvement from a loss of PKR 3.31 million in 2024.
• 💼 The company reported a profit after income tax of PKR 28.74 million, compared to a loss of PKR 21.73 million in the previous year.
• ✔️ Earning per share was PKR 0.50, a positive shift from a loss per share of PKR 0.38 in 2024.
• 🏦 Total assets increased to PKR 1.11 billion, up from PKR 865.92 million in 2024.
• ✅ Cash and cash equivalents increased to PKR 274.87 million, compared to PKR 75.75 million at the beginning of the year.
• 📉 Accumulated losses decreased to PKR 84.19 million from PKR 112.93 million.
• 👍 Total equity increased to PKR 435.06 million from PKR 406.32 million.

🎯 Investment Thesis

Based on the improved financial performance, I recommend a HOLD position. The company has shown progress, but sustained profitability and efficient cost management are crucial. A price target of PKR 12.00 per share is set, reflecting a modest upside potential based on earnings growth. This recommendation has a medium-term horizon (6-12 months).