⚡ Flash Summary
Pak Elektron Limited (PAEL) reported an impressive 15.59% increase in revenue, reaching PKR 63.303 billion for the quarter ended September 30, 2025, compared to PKR 54.766 billion in the same period last year. Gross profit also saw a significant rise of 15.88%, amounting to PKR 12.709 billion. The company successfully reduced its finance costs by PKR 1.023 billion due to better cash management and reduced policy rates. Consequently, profit after tax increased substantially by 63.86% to PKR 3.051 billion from PKR 1.862 billion, resulting in earnings per share of PKR 3.38 compared to PKR 2.14 last year.
📌 Key Takeaways
- 🚀 Revenue increased by 15.59% to PKR 63.303 billion.
- 💰 Gross profit rose by 15.88% to PKR 12.709 billion.
- 📉 Finance costs decreased by PKR 1.023 billion.
- 📈 Profit after tax surged by 63.86% to PKR 3.051 billion.
- ⭐ Earnings per share (EPS) increased to PKR 3.38 from PKR 2.14.
- ⬆️ Appliance Division revenue jumped by 37.50% to PKR 43.829 billion.
- 🇺🇸 Export of transformers to the USA commenced successfully.
- 🤝 Strategic partnership formed with Electrolux AB.
- 🏭 Large-Scale Manufacturing (LSM) registered a 9.0% YoY growth in July 2025.
- 🌍 Global GDP is expected to increase by 3.0% in 2025.
- 🌾 Agricultural credit disbursement increased by 19.5% to PKR 404.2 billion.
- 💲 Current account deficit increased to $624 million from $430 million last year.
- 📊 Goods exports rose 10.2% to $5.3 billion, while imports increased 8.8% to $10.4 billion.
- ✔️ Policy rate remains unchanged at 11%.
- ✅ Company plans to expand globally by focusing on exports and improving its products.
🎯 Investment Thesis
PAEL is a BUY. The company’s impressive financial performance, driven by strong revenue growth, improved profitability, and strategic initiatives such as the Electrolux partnership and expansion into the US market, make it an attractive investment. The price target is PKR 4.50, based on a projected EPS growth of 20% over the next year and a P/E ratio of 15x. The time horizon is medium-term (12-18 months).
Disclaimer: AI-generated analysis. Not financial advice.