⚡ Flash Summary

MCB Pakistan Stock Market Fund reported a significantly improved financial performance for the quarter ended September 30, 2025. The fund’s net income after taxation surged to PKR 6,925.383 million, a substantial increase from PKR 410.817 million in the same quarter last year. This impressive growth was primarily driven by substantial gains in the value of investments and strategic capital gains on sales. The fund’s net asset value per unit also increased, reflecting the overall positive financial results.

📌 Key Takeaways

• 📈 Net income after taxation soared to PKR 6,925.383 million, up from PKR 410.817 million year-over-year.
• 💰 Capital gains on the sale of investments reached PKR 1,246.494 million compared to PKR 200.264 million last year.
• 📊 Dividend income increased to PKR 231.741 million from PKR 106.747 million.
• 🏦 Profit on balances with banks rose to PKR 27.785 million from PKR 14.874 million.
• 💹 Unrealized gain on revaluation of investments significantly contributed PKR 5,694.680 million vs PKR 177.181 million in 2024.
• 📉 Total expenses increased to PKR 275.503 million compared to PKR 88.377 million due to higher management and transaction costs.
• 💸 Remuneration of the Management Company increased to PKR 197.939 million from PKR 62.694 million.
• 🧾 Net Assets increased significantly to PKR 31,435.588 million from PKR 20,328.780 million.
• ✅ Number of units in issue rose to 92,607,810 from 78,686,850.
• ✨ Net Asset Value per Unit increased to PKR 339.4486 from PKR 258.3504.
• 💸 Cash flow from operating activities resulted in a net cash used of PKR (3,416.218) million, compared to PKR (788.723) million used last year.
• 🏦 Cash and cash equivalents at the end of the period stood at PKR 2,822.287 million, up from PKR 198.629 million.

🎯 Investment Thesis

BUY. The MCB Pakistan Stock Market Fund presents a compelling investment opportunity due to its significant income growth, driven by strategic investments and capital gains. Despite increased expenses, the fund’s overall financial health has improved substantially, leading to higher NAV per unit. The positive trajectory makes it an attractive option for investors. Target price is 400 PKR by end of 2026.