⏸️ PAKD: HOLD Signal (6/10) – Financial Results (Un-Audited) for the period ended Sep 30, 2025

📌 Key Takeaways

• ⬆️ Revenue increased to PKR 304.30 million from PKR 287.16 million year-over-year.
• Profit decreased to PKR 34.33 million from PKR 38.47 million year-over-year.
• ❌ No interim cash dividend declared.
• ❌ No bonus shares declared.
• ❌ No right shares declared.
• Earnings per share (EPS) decreased to PKR 2.90 from PKR 3.24 year-over-year.
• Gross profit decreased to PKR 80.31 million from PKR 85.24 million year-over-year.
• 📉 Administrative expenses increased to PKR 53.44 million from PKR 50.08 million year-over-year.
• 📈 Marketing expenses increased to PKR 14.31 million from PKR 7.42 million year-over-year.
• Cash and bank balances increased to PKR 592.77 million from PKR 511.20 million compared to June 30, 2025.
• 📉 Stock-in-trade increased significantly to PKR 107.16 million from PKR 0.48 million compared to June 30, 2025.
• ⚖️ Trade debts decreased to PKR 276.72 million from PKR 539.65 million compared to June 30, 2025.
• 📉 Contract work in progress decreased to PKR 97.10 million from PKR 152.81 million compared to June 30, 2025.
• ⬆️ Deferred taxation increased to PKR 77.39 million from PKR 76.18 million compared to June 30, 2025.
• Lease liabilities increased to PKR 82.74 million from PKR 50.68 million compared to June 30, 2025.

🎯 Investment Thesis

Based on the current financial results, a HOLD recommendation is appropriate for Pak Datacom. While revenue growth is positive, the decline in profitability raises concerns. A more in-depth analysis of the reasons behind the increased expenses and working capital changes is needed before making a definitive investment decision. A potential price target will depend on future earnings forecasts and the company’s ability to improve its profitability. The time horizon for this recommendation is medium-term, pending further financial results and strategic developments.