⚡ Flash Summary

B.F. Modaraba (BFMOD) reported a substantial increase in revenue for the year ended June 30, 2025. Gross revenues surged by 80% year-over-year, climbing to Rs. 33.145 million. This surge was fueled by profits from marketable securities and sugar trading activities, capitalizing on favorable economic conditions in Pakistan. Earnings per certificate also increased significantly to Rs. 1.96.

📌 Key Takeaways

• 📈 Revenue soared by 80%, reaching Rs. 33.145 million compared to Rs. 18.445 million in the previous year.
• 💰 Trading income was a major contributor, amounting to Rs. 17.459 million.
• 🏦 Dividend income stood at Rs. 5.024 million.
• 💸 Profit on bank deposits contributed Rs. 5.340 million.
• 🤝 Diminishing Musharakah income amounted to Rs. 5.299 million.
• ✅ Pre-tax profit reached Rs. 14.697 million, a notable increase from Rs. 6.269 million in 2024.
• ⭐ Earnings per certificate significantly increased to Rs. 1.96.
• 📊 Equity Market index closed 60% higher at 125,627 points.
• 💼 Unrealized gain on marketable securities was Rs. 21.472 million, a turnaround from an unrealized loss of Rs. 17.605 million in 2024.
• 🌱 Workshop business, impacted by earlier economic slowdown, shows signs of recovery.
• 🛡️ The company emphasizes prudent risk management and diversification of income streams.
• 🤝 Management reaffirms its commitment to sustainable growth and operational excellence.
• 👧 Gender Pay Gap remains at 100% due to the absence of female employees within the Modaraba.
• ✅ Auditor’s report indicates proper financial statement maintenance and compliance with regulatory standards.

🎯 Investment Thesis

BFMOD presents a compelling BUY opportunity due to its strong financial performance, demonstrated growth, and proactive management strategies. The company’s ability to capitalize on favorable economic conditions and deliver significant revenue and earnings growth suggests a positive outlook. A price target of Rs. 2.50 is justified based on the enhanced EPS and the improved market sentiment, with a medium-term investment horizon.