📈 PAKT: BUY Signal (7/10) – Financial Results for the Quarter Ended 2025-09-30

📌 Key Takeaways

• 💰 Fifth interim cash dividend declared at Rs. 20.00 per share (200%) for the year ending December 31, 2025.
• 💵 Additional interim dividends already paid at Rs. 130.00 per share (1300%).
• 📊 Net turnover increased to Rs. 102.548 billion for the nine months ended September 30, 2025, from Rs. 88.119 billion in 2024.
• 📈 Gross profit rose to Rs. 52.418 billion from Rs. 42.060 billion year-over-year.
• Operating profit increased from Rs. 30.862 billion to Rs. 40.463 billion YoY.
• 💹 Profit before income tax increased to Rs. 41.557 billion for the nine months ended September 30, 2025, from Rs. 35.615 billion in 2024.
• ✅ Profit for the period increased to Rs. 24.518 billion from Rs. 19.914 billion YoY.
• 💸 Basic and diluted earnings per share increased from Rs. 77.95 to Rs. 95.96.
• 🚫 No bonus or rights shares declared.
• 🗓️ Share book transfer will be closed from November 3rd to 5th, 2025.
• 🏦 Stock-in-trade increased to Rs. 55.419 billion as of September 30, 2025, compared to Rs. 48.842 billion at the end of 2024.
• 🏦 Cash and bank balances decreased to Rs. 6.034 billion from Rs. 13.303 billion at the end of 2024.
• ⬆️ Total comprehensive income for the period increased from 19.815 billion to 24.655 billion YoY.
• Tax expense increased from (15.701) billion to (17.039) billion YoY.
• The company continues to distribute substantial profits as dividends.

🎯 Investment Thesis

Based on the positive financial performance, particularly the increase in revenue, profitability, and EPS, along with a substantial dividend payout, a BUY recommendation is justified for Pakistan Tobacco Company (PAKT). The company’s ability to grow its earnings and provide returns to shareholders makes it an attractive investment. However, attention should be paid to increased tax expenses and decreased cash balances. The price target should be set based on detailed valuation analysis, considering future growth prospects and industry comparisons. The time horizon is MEDIUM_TERM, expecting the stock to appreciate based on sustained financial performance.