⚡ Flash Summary
First Elite Capital Modaraba reported a significant decrease in profit after taxation, falling from Rs. 23.64 million in 2024 to Rs. 4.69 million in 2025. This decline is primarily attributed to fair value gain on investment properties. While the Modaraba’s gross revenue was Rs. 52.32 million, largely from investment property gains, Ijraha/Lease, and mutual fund investments, earnings per certificate also decreased to Rs. 0.41 from Rs. 2.08. The company did not recommend any dividend this year due to accumulated losses.
📌 Key Takeaways
- 📉 Profit after taxation decreased significantly to Rs. 4.69 million from Rs. 23.64 million yoy.
- ⚠️ Earnings per certificate declined from Rs. 2.08 to Rs. 0.41 yoy.
- 💰 Total income decreased to Rs. 52.32 million from Rs. 69.32 million yoy.
- 🏢 Revenue was mainly derived from fair value gain on Investment Properties, Ijraha/Lease and profit on Investment in Mutual Funds.
- 🧾 Depreciation of Assets Leased Out increased to Rs. 26.39 million from Rs. 23.69 million yoy.
- 💸 Administrative & General Expenses increased to Rs. 19.17 million from Rs. 18.08 million yoy.
- ❌ No dividend was recommended due to accumulated losses.
- 📊 The portfolio of Ijarah remained at Rs.113.69 million.
- 🛡️ Certificate holders equity stood at Rs.137.90 million.
- 💰 Breakup value per certificate was Rs.12.16.
- 📈 Pakistan’s economy showed signs of strengthening in FY 2025, but high debt servicing and energy sector arrears persist.
- 🔮 Management intends to concentrate on small ticket Ijrah financing and explore new avenues for profitable business.
- 💼 There are ongoing proceedings for multiple tax years.
- ⚖️ The auditor has issued a going concern opinion.
🎯 Investment Thesis
SELL. The company’s declining profits, earnings, and dividends, combined with increasing operational costs, render it as an unattractive investment. A reasonable price to set may be its net asset value (NAV) less 10%.
Disclaimer: AI-generated analysis. Not financial advice.