⚡ Flash Summary

Dawood Equities Limited (DEL) has reported a strong first quarter for 2025, with revenue significantly increasing to Rs. 87.3 million compared to Rs. 38.8 million in the same quarter last year. This growth is attributed to improved trading activity during the quarter. The company’s net profit reached Rs. 35.6 million, resulting in earnings per share of Rs. 1.30. Overall, the financial performance indicates a positive trajectory for DEL, driven by enhanced trading volumes and efficient operations.

📌 Key Takeaways

• 🚀 Revenue surged to Rs. 87.3 million in Q1 2025, a significant increase from Rs. 38.8 million in Q1 2024.
• 📈 Net profit reached Rs. 35.6 million, indicating strong profitability.
• 💰 Earnings per share (EPS) stood at Rs. 1.30 for the quarter.
• 💼 Trading activity improved substantially compared to the previous quarter.
• 📊 Administrative expenses increased to Rs. 17.99 million from Rs. 12.06 million year over year.
• ✨ Net unrealized gain on re-measurement of investments was Rs. 17.31 million.
• 🏦 Cash and bank balances increased significantly to Rs. 56.12 million from Rs. 9.21 million.
• ✔️ Total assets grew to Rs. 885.35 million from Rs. 794.07 million.
• 🌱 Total equity increased to Rs. 423.20 million from Rs. 370.59 million.
• 💸 Short term investments grew to Rs. 124.14 million from Rs. 118.44 million.
• ✅ The company’s principle business remains trading and brokerage of listed equities.

🎯 Investment Thesis

BUY. Dawood Equities shows strong growth potential based on its impressive first-quarter performance. With increased trading activity and efficient cost management, the company is well-positioned for future growth. A price target of Rs. 20.00, based on a P/E ratio of 15x 2025 estimated EPS, is achievable within the next 12 months.