⚡ Flash Summary
Escorts Investment Bank Limited (ESBL) reported a net loss of PKR 26.97 million for the quarter ended September 30, 2025, compared to a net loss of PKR 9.37 million for the same period last year. This represents a significant deterioration in profitability. The loss is primarily attributed to a decrease in income from financing and investments, coupled with increased administrative expenses. The company’s total assets decreased slightly from PKR 660.80 million to PKR 637.44 million.
📌 Key Takeaways
- 📉 Net loss significantly widened to PKR 26.97 million from PKR 9.37 million YoY.
- 💰 Total income decreased substantially from PKR 30.77 million to PKR 16.38 million YoY.
- 📊 Loss per share increased to PKR (0.20) from PKR (0.17) YoY.
- 🏢 Administrative expenses increased from PKR 37.45 million to PKR 39.69 million YoY.
- 💸 Finance costs decreased from PKR 1.56 million to PKR 0.91 million YoY.
- Investments performed poorly with short term finances decreasing from PKR 100.06 million to PKR 59.21 million.
- 📉 Operating loss before provisions and taxation deepened to PKR (24.22) million from PKR (8.24) million YoY.
- Balance sheet shows decreased Cash and bank balances from PKR 314.95 million to PKR 306.95 million.
- 📉 Total assets declined slightly from PKR 660.80 million to PKR 637.44 million.
- Liabilities decreased from PKR 130.99 million to PKR 136.85 million.
- Equity dropped from PKR 502.58 million to PKR 475.61 million.
- ⚠️ Revenue reserve further dipped to negative PKR 1,054.32 million from negative PKR 1,027.55 million.
- 👎 Revaluation surplus on property and equipment decreased marginally to PKR 15.89 million from PKR 16.09 million
🎯 Investment Thesis
SELL. ESBL’s financial performance is deteriorating, with widening losses and declining revenue. The company faces significant financial and operational risks. The current market conditions make it difficult for ESBL to improve its profitability in the near term. The price target is set at PKR 8.00, reflecting a discount to book value, over a time horizon of 6-12 months.
Disclaimer: AI-generated analysis. Not financial advice.