📉 ORM: SELL Signal (7/10) – Financial Results for the Quarter Ended September 30, 2025

📌 Key Takeaways

• ❌ No cash dividend, bonus shares, or right shares were announced.
• 📉 Profit for the quarter decreased to PKR 29.03 million compared to PKR 50.34 million in the same quarter last year.
• 📉 Earnings per certificate (basic and diluted) declined to PKR 0.39 from PKR 0.67 year-over-year.
• 📉 Ijarah rentals (net) decreased to PKR 322.63 million from PKR 351.29 million.
• 📈 Operation and maintenance income (net) increased to PKR 288.40 million from PKR 237.20 million.
• 🔻 Income from diminishing Musharaka financing was PKR 1.02 million, compared to 0 last year.
• 🔻 Total income increased from PKR 588.49 million to PKR 612.05 million.
• 🔺 Operating expenses increased to PKR 490.39 million from PKR 437.02 million.
• 📉 Finance costs decreased to PKR 22.16 million from PKR 31.85 million.
• 📉 Profit before levies and taxation decreased to PKR 77.76 million from PKR 94.89 million.
• 🔺 Levies increased to PKR 16.03 million from PKR 9.33 million.
• 🔻 Cash generated from operations decreased to PKR 46.04 million from PKR 7.79 million.
• 🔻 Net cash used in operating activities was PKR (64.19) million, compared to cash used of PKR (370.49) million last year.
• 🔻 Repayment of diminishing Musharaka financing was PKR (22.18) million compared to repayment of PKR (28.15) million last year.

🎯 Investment Thesis

Based on the declining profitability and negative cash flow from operations, a SELL recommendation is warranted. The price target needs to be re-evaluated based on a full financial model, but a likely scenario is to expect further price depreciation in the short term.