⚡ Flash Summary

Intermarket Securities Limited (IMS) reported a strong first quarter for the financial year 2025, marked by a significant increase in operating revenues and profitability. The company’s operating revenues surged to Rs. 452.764 million, a substantial increase from Rs. 317.011 million in the same period last year. This growth translated into higher profits, with after-tax profit reaching Rs. 209.835 million compared to Rs. 103.863 million year-over-year. Consequently, the earnings per share (EPS) also saw a notable rise, reaching Re. 0.16 compared to Re. 0.04 in the previous year, demonstrating improved financial performance across key metrics.

📌 Key Takeaways

• 🚀 Operating revenues increased significantly to Rs. 452.764 million, up from Rs. 317.011 million YoY.
• 💰 Profit before tax surged to Rs. 237.729 million compared to Rs. 137.818 million in the previous year.
• ✅ After-tax profit nearly doubled, reaching Rs. 209.835 million from Rs. 103.863 million YoY.
• 📈 EPS soared to Re. 0.16, a fourfold increase from Re. 0.04 in the same period last year.
• 📊 Short term Investments increased from 265.11 million to 670.79 million.
• 🏦 Trade debts decreased from 940.09 million to 717.13 million.
• 💵 Cash and bank balances significantly increased to Rs. 995.419 million from Rs. 170.320 million since June 30, 2025.
• ✔️ Authorized share capital remains constant at 2,000,000,000 ordinary shares.
• 💼 Total assets grew to Rs. 4,781.058 million compared to Rs. 3,362.260 million as of June 30, 2025.
• 📉 Finance costs decreased to Rs. 17.433 million from Rs. 40.249 million in the comparable quarter.
• 📊 Brokerage commission increased from 233.738 million to 357.186 million.
• 🤝 The company successfully merged with EFG Hermes Pakistan Limited, effective July 1, 2024.
• 🏦 Short term borrowings increased from 534.255 million to 931.009 million.

🎯 Investment Thesis

Based on the strong Q1 performance, improved profitability, and enhanced financial position, a BUY recommendation is warranted for Intermarket Securities. The company’s successful merger, increase in revenue, and earnings growth make it an attractive investment. The price target is set at Rs. 0.80, representing a 25% upside potential over the next 12 months, contingent on maintaining growth momentum and effective cost management.