⚡ Flash Summary
OLP Modaraba (OLPM) reported a net profit of PKR 174.077 million for the year ended June 30, 2025, reflecting a 10.36% increase from the previous year. The board has approved a cash dividend of 25% (PKR 2.50 per certificate). The announcement underscores OLPM’s robust operational performance and sustained commitment to creating value for its certificate holders despite macroeconomic headwinds. The financial highlights show growth in total assets, portfolio size, and earnings per certificate.
📌 Key Takeaways
- ✅ Net profit increased by 10.36% to PKR 174.077 million.
- 💰 Cash dividend of PKR 2.50 per certificate declared (25%).
- 📈 Total assets grew by 14.67% to PKR 8.874 billion.
- 📊 Ijarah and Diminishing Musharaka portfolio reached PKR 7.383 billion, a 18.78% increase YoY.
- ⭐ Earnings per certificate (EPC) increased to PKR 3.84 from PKR 3.48.
- 🏦 Total disbursements increased to PKR 3.470 billion, up from PKR 3.197 billion.
- 💼 Key audit matter: Focus on ECL (Expected Credit Loss) against ijarah and diminishing musharika.
- 🏆 Recognized with the Corporate Excellence Trophy and the Top Performance Award.
- 🏅 Maintained a credit rating of AA (long-term) and A1+ (short-term) from PACRA.
- 🌱 Commitment to environmental protection and conservation efforts through various initiatives.
- 🤝 Emphasis on regulatory alignment and operational resilience.
- 🌍 Increased focus on engaging with Medium and Small sized Enterprises (MSEs).
- 🔒 Stringent Internal Controls: Robust risk management and compliance framework.
🎯 Investment Thesis
Given the consistent performance and solid fundamentals, a HOLD recommendation is warranted. However, potential investors should closely monitor credit risk and market volatility due to local conditions. As the local stock market does not reflect actual valuations, it would be value trap to go aggressively BUY
Disclaimer: AI-generated analysis. Not financial advice.