⚡ Flash Summary

Arif Habib Corporation Limited (AHCL) reported significant financial growth in FY25. Standalone revenue increased by 30.48% to PKR 4,953 million, while consolidated revenue decreased slightly by 7.57% to PKR 9,205 million. Profit after tax saw substantial gains, with standalone profit rising by 152.09% to PKR 23,775 million and consolidated profit increasing by 30.82% to PKR 11,138 million. The company has also been actively restructuring its share capital and investment portfolio, including a scheme of arrangement and subdivision of shares to enhance liquidity.

📌 Key Takeaways

• 🚀 Standalone revenue increased by 30.48% to PKR 4,953 million in FY25.
• 📉 Consolidated revenue slightly decreased by 7.57% to PKR 9,205 million.
• 💰 Standalone profit after tax surged by 152.09% to PKR 23,775 million.
• 📈 Consolidated profit after tax increased by 30.82% to PKR 11,138 million.
• 💸 Earnings per share (EPS) increased significantly: Standalone EPS up by 151.79% to PKR 5.64, Consolidated EPS up by 32.97% to PKR 2.46.
• 🏦 Total assets increased: Standalone assets up by 72.76% to PKR 66,292 million, Consolidated assets up by 17.81% to PKR 76,624 million.
• Equity also increased: Standalone equity up by 61.12% to PKR 54,893 million, Consolidated equity up by 17.18% to PKR 53,216 million.
• 📊 Breakup Value per Share increased: Standalone Breakup Value up by 61.14% to PKR 13.02, Consolidated Breakup Value up by 17.18% to PKR 12.62.
• Dividends: Declared a final cash dividend of PKR 1 per share (100%) for the year ended June 30, 2025.
• Shares Subdivision: Approved the subdivision of shares, changing the face value from Rs. 10 to Re. 1 per share.
• REITs: Manages REITs through Arif Habib Dolmen REIT Management Limited (AHDRML), focusing on real estate investments.
• Scheme of Arrangement: Implemented a scheme of arrangement involving the demerger of certain non-core businesses from AHL.
• Musharaka Arrangements: Invested in several Musharaka arrangements managed by JCL and AHCL, focusing on real estate projects.
• Subsidiaries: Arif Habib Limited (AHL), Sachal Energy Development Private Limited (SEDPL), Black Gold Power Limited (BGPL), and Rayann commodities.
• Strategic Investments: Significant holdings in Fatima Fertilizer (15.19%), Safemix Concrete Limited (27.63%) and Javedan Corporation Limited(39.52%).

🎯 Investment Thesis

AHCL presents a compelling investment opportunity given its strong growth trajectory, strategic diversification, and active restructuring. The increase in standalone profit and the promising outlook for its REIT and energy investments suggest significant upside potential. I recommend a BUY rating with a price target of PKR 15.00, based on a forward P/E ratio of 6x FY26 projected EPS. This target reflects the company’s growth prospects and the potential for value creation through its strategic initiatives. The time horizon is MEDIUM_TERM, expecting the price target to be achieved within the next 12-18 months.