⏸️ OLPL: HOLD Signal (6/10) – Presentation – Corporate Briefing Session 2025

📌 Key Takeaways

• Revenue decreased from PKR 7.98 billion in FY24 to PKR 6.96 billion in FY25 📉.
• Profitability declined from PKR 1.39 billion in FY24 to PKR 1.23 billion in FY25 📉.
• Earnings Per Share (EPS) decreased from PKR 7.94 in FY24 to PKR 6.99 in FY25 📉.
• OLPL disbursed a total of PKR 273 billion to SMEs over the last 39 years 💰.
• Market capitalization stands at PKR 6.75 billion as of June 30, 2025 🏢.
• 74% of total disbursements in FY25 went to the SME & individual sector 🏦.
• SME & individual represents 72% of the portfolio (61% of total assets) 📊.
• The company maintains a Long Term AAA and Short Term A1+ credit rating ✅.
• OLPL has 31 branches in 26 cities across Pakistan 📍.
• Dividend including bonus shares increased to 55% in 2025 from 50% in 2024 ⬆️.
• Price to Book ratio increased from 0.46 to 0.62 from June-24 to June-25 📈.
• Dividend Yield decreased from 18.06% to 14.30% from June-24 to June-25 📉.
• Total Assets increased from PKR 31.954 billion to PKR 35.417 billion ⬆️.
• Total borrowings increased from PKR 18.235 billion to PKR 21.463 billion ⬆️.
• The company is focused on digitization, automation, and new product offerings for future growth 🚀.

🎯 Investment Thesis

Given the decrease in revenue, profitability, and EPS, and the increase in borrowings, a HOLD recommendation is appropriate. While OLPL maintains strong credit ratings and a focus on the SME sector, the declining financial performance warrants caution. Further monitoring of the company’s strategic initiatives and their impact on future financial results is recommended.