⚡ Flash Summary

Intermarket Securities Ltd. reported a strong first quarter for 2025, with a significant increase in operating revenue and profit after taxation. Operating revenue increased to Rs 394.08 million from Rs 295.32 million in the same quarter last year. Profit after taxation nearly doubled, reaching Rs 209.84 million compared to Rs 103.86 million in 2024. This growth is primarily driven by higher income from investments and effective cost management.

📌 Key Takeaways

• 📈 Operating revenue surged to Rs 394.08 million, a 33.44% increase from Rs 295.32 million in Q1 2024.
• 💰 Income from investments significantly rose to Rs 58.68 million, compared to Rs 21.69 million year-over-year.
• ✅ Profit after taxation almost doubled to Rs 209.84 million, up from Rs 103.86 million.
• 💲 Earnings per share (EPS) increased to Rs 0.16 from Rs 0.10.
• 📉 Finance costs decreased from Rs 40.25 million to Rs 17.43 million, indicating better financial management.
• 📊 Administrative expenses increased to Rs 216.55 million from Rs 153.08 million in the comparative period.
• 🏦 Cash and bank balances increased substantially to Rs 995.42 million from Rs 170.32 million.
• ⚠️ Trade debts decreased from Rs 940.09 million to Rs 717.14 million.
• 💡 Receivable against margin financing significantly increased to Rs 1,133.17 million from Rs 553.73 million.
• ✔️ Total assets grew to Rs 4,781.06 million from Rs 3,362.26 million.
• liabilities also increased to Rs 2,960.53 million from Rs 1,748.68 million.

🎯 Investment Thesis

BUY. Intermarket Securities presents a compelling investment opportunity based on its strong Q1 2025 results. The significant growth in revenue, profitability, and cash balances indicates a positive trajectory. The decreased finance costs and improved EPS further support the investment thesis. The price target is Rs 2.00, based on a projected P/E ratio of 12x and an EPS of Rs 0.16 over the next 12 months. The time horizon is medium-term, with expectations of continued growth and improved financial performance.