📈 NICL: BUY Signal (7/10) – Un-Audited Financial Results For The First Quarter Ended September 30, 2025

📌 Key Takeaways

• 💰 Revenue from contracts increased to PKR 14.608 billion from PKR 12.981 billion year-over-year.
• 📈 Net revenue after sales tax and discounts grew to PKR 12.459 billion from PKR 11.131 billion.
• Gross profit decreased slightly to PKR 1.561 billion from PKR 1.594 billion.
• Operating profit decreased slightly to PKR 1.246 billion from PKR 1.256 billion.
• 💸 Finance costs significantly decreased to PKR 506.174 million from PKR 763.228 million.
• 📊 Profit before income tax increased to PKR 705.090 million from PKR 455.331 million.
• ✅ Profit after income tax increased to PKR 503.516 million from PKR 300.653 million.
• ⭐ Earnings per share (EPS) increased to PKR 4.55 from PKR 2.72.
• 📢 A cash dividend of Re. 1 per share (10%) was declared.
• Non-current assets increased slightly to PKR 13.961 billion from PKR 13.875 billion.
• Current assets increased to PKR 20.737 billion from PKR 19.436 billion.
• 📉 Long-term loans decreased to PKR 2.835 billion from PKR 3.283 billion.
• Short term borrowings decreased to PKR 12.746 billion from PKR 12.994 billion.
• Cash and cash equivalents decreased to PKR 137.328 million from PKR 184.011 million.

🎯 Investment Thesis

BUY. NICL’s improved EPS and the declared dividend make it an attractive investment. The reduction in finance costs indicates better financial management, contributing to higher profitability. A price target of PKR 55, based on a P/E multiple of 12x the current EPS, is reasonable, with a time horizon of 12 months. This recommendation assumes continued revenue growth and stable financial management.