⚡ Flash Summary

Pak Datacom Limited (PAKD) reported a 10.13% increase in net revenue, reaching Rs 1.856 billion for FY 2024-25, driven by a significant 119.83% expansion in its solar business. The company maintains a stable gross profit margin of 26% in its core segment. The Board has recommended a final cash dividend of 60%, equivalent to Rs. 6 per share. The company is focused on operational efficiency, prudent financial management, and expansion into new revenue streams.

📌 Key Takeaways

• ✅ Net revenue increased by 10.13% YoY, reaching Rs 1.856 billion.
• ☀️ Solar business expanded by an impressive 119.83% YoY.
• 💰Stable gross profit margin of 26% maintained in the core business.
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• 🤝Strong network of partners supporting telecom and green energy solutions.
• 📊 Debt-free status supports long-term investments.
• 🌐 Expansion into underserved markets targeted through satellite-based connectivity.
• 💼Digital transformation accelerating across public and private sectors.
• 🛡️ Multi-digital projects aimed at transitioning the organization towards a paperless and tech-enabled environment.
• 📜 Board comprises seven highly qualified professionals providing strategic direction and risk management.
• 💯 Compliance with Listed Companies (Code of Corporate Governance) Regulations, 2019.
• 🌱 Environmental sustainability goals being pursued through green energy solutions.

🎯 Investment Thesis

Given PAKD’s steady financial performance, successful diversification into the solar business, and dividend payout, a HOLD recommendation is assigned. However, decreasing cash flows and regulatory uncertainties warrant careful monitoring. The near-term price target is Rs. 311.70, reflecting the current market price and dividend value.