📉 FIMM: SELL Signal (8/10) – Financial Results for the Quarter Ended September 30, 2025

📌 Key Takeaways

• 📉 Net loss of PKR 2.185 million compared to a profit of PKR 29.162 million YoY.
• 📉 Sales decreased by 18.08% from PKR 308.119 million to PKR 252.402 million YoY.
• 💰 Operating expenses increased to PKR 32.996 million from PKR 26.193 million YoY.
• 💸 Financial charges decreased to PKR 5.703 million from PKR 8.078 million YoY.
• 📊 Basic and diluted loss/earnings per certificate is PKR -0.73 compared to PKR 9.72 YoY.
• ⬇️ Cash generated from operating activities decreased from PKR -101.19 million to PKR 12.130 million YoY.
• liabilities increased from PKR 169.485 million to PKR 25.264 million YoY.
• ⬆️ Cash generated from investing activities decreased from PKR 15,000 to PKR -9.048 million YoY.
• ⬆️ Receipts of Qard-e-Hasana from Modaraba Management Company decreased from PKR 133.00 million to PKR 69.00 million YoY.
• ⬇️ Repayment of Musharaka finances decreased from PKR -438.844 million to PKR -419.978 million YoY.
• ❌ No dividends were declared for the period.
• 🏦 Cash and bank balances decreased to PKR 5.918 million from PKR 13.928 million YoY.
• ⚠️ Company faced significant pressure on profitability and cash flow during the quarter.
• 🤔 Decline in sales and increase in levies contributed to the net loss.

🎯 Investment Thesis

Given the negative financial performance, including a net loss and declining revenue, a SELL recommendation is warranted. The price target is PKR 5, with a time horizon of 6 months, based on the expectation of continued market pressures and operational inefficiencies. The company needs to demonstrate significant improvements in profitability and cash flow to justify a more positive outlook. Without substantial changes, the stock is likely to underperform.