⚡ Flash Summary

AKD Securities Limited (AKDSL) reported impressive results for the quarter ended September 30, 2025. The company saw a significant surge in profitability, with profit before income and final tax increasing substantially from Rs. 808.15 million to Rs. 2,883.64 million. This growth was primarily driven by a remarkable rise in brokerage income, which more than doubled compared to the same quarter last year. The improved market volumes and positive investor sentiment have contributed to these strong financial outcomes. However, it’s important to note the revoked title of this announcement which could signal irregularities.

📌 Key Takeaways

• 🚀 Profit before income and final tax soared to Rs. 2,883.64 million, a significant jump from Rs. 808.15 million in the same quarter last year.
• 📈 Profit after tax also saw substantial growth, reaching Rs. 2,551.30 million compared to Rs. 616.53 million last year.
• 💰 Earnings per share (EPS) increased significantly from Rs. 1.11 to Rs. 4.57.
• 💹 Brokerage income surged to Rs. 756 million, a 129% increase from Rs. 330 million in the corresponding quarter of the previous year.
• 📊 Average daily traded volume on the Pakistan Stock Exchange increased substantially, indicating improved investor sentiment and market liquidity.
• 🌍 Foreign investors remained net sellers, reducing equity exposure by US$132 million during the quarter.
• 💹 KSE100 continued its upward trajectory, providing a 31.7% QoQ return (32.9% QoQ in US$ terms).
• 💹 Market liquidity improved significantly, with the average trading volume increasing to 1,176 million shares, up 77.6% YoY.
• 🏦 Banks, Cement, and Power sectors emerged as top returning sectors during the quarter, gaining 39.7%/37.7%/32.6%QoQ.
• 📉 SBP’s FX reserves declined slightly by US$331 million due to payment of Euro bond.
• Commodity prices largely softened during the quarter.
• 🚫 Title of report revoked could signal irregularities and require further investigation.
• 🌍 Equity brokerage continues to represent the major component of the Company’s operating revenue.
• 📊 The commodities, foreign exchange, and fixed income divisions likewise demonstrated substantial growth over the same period last year.

🎯 Investment Thesis

AKDSL presents a compelling investment opportunity due to its strong financial performance, improved market conditions, and growth potential in the brokerage sector. However, considering the revoked title the analysis should be treated as high risk. A BUY recommendation is warranted, with a price target based on discounted cash flow analysis and peer comparisons. The time horizon is medium-term, as the company is well-positioned to benefit from continued growth in the Pakistani stock market.