⚡ Flash Summary

OLP Modaraba’s financial results for the quarter ended September 30, 2025, show a decrease in revenue compared to the same period last year, but the profit after taxation remained relatively stable. Specifically, revenue decreased from PKR 525.79 million to PKR 385.38 million, while profit after taxation saw a slight increase from PKR 33.19 million to PKR 33.31 million. No cash dividend, bonus shares, or right shares were recommended. The company’s earnings per certificate remained almost flat at PKR 0.73.

📌 Key Takeaways

• Revenue decreased significantly from PKR 525.79 million to PKR 385.38 million 📉.
• Profit after taxation saw a slight increase from PKR 33.19 million to PKR 33.31 million 📈.
• No cash dividend was recommended for the period 🚫.
• No bonus shares were announced 🎁.
• No right shares were declared 🚫.
• Earnings per certificate remained almost flat at PKR 0.73 📊.
• Diminishing Musharakah income decreased from PKR 314.30 million to PKR 269.10 million 📉.
• Ijarah rentals earned decreased from PKR 175.05 million to PKR 100.72 million 📉.
• Financial and other charges decreased from PKR 298.94 million to PKR 184.05 million 📉.
• Administrative and operating expenses increased from PKR 68.03 million to PKR 71.43 million ⬆️.
• The company’s total assets decreased from PKR 8,873.73 million to PKR 8,598.46 million 📉.
• Long-term portion of diminishing musharakah decreased from PKR 4,736.61 million to PKR 4,443.20 million 📉.
• Current portion of diminishing musharakah increased from PKR 2,073.55 million to PKR 2,203.74 million ⬆️.
• Cash and bank balances increased from PKR 604.58 million to PKR 761.68 million ⬆️.

🎯 Investment Thesis

Given the decrease in revenue and a relatively stable profit, I recommend a HOLD position for OLP Modaraba. While the company has managed to maintain its profitability, the decline in core revenue streams raises concerns about its future growth prospects. A price target of PKR 10, based on the current earnings per certificate, is appropriate for a medium-term horizon (6-12 months).