β‘ Flash Summary
Orient Rental Modaraba (ORM) presented its Corporate Briefing Session (CBS) for 2025, showcasing its operations as a multi-purpose, perpetual Modaraba spun off from Orient Energy Systems (OES). ORM focuses on providing Shariβah-compliant, riba-free income through equipment rental solutions. Key services include rental power generation (100 kVA to 1770 kVA), plant operations, facility management, and construction equipment rental. Financial data indicates fluctuating profitability, with net profit at Rs 29 million for the quarter ended September 2025, significantly lower than previous years.
π Key Takeaways
- Established in 1996, OES is a prominent Pakistani engineering company with over 2,000 MW installed. π
- ORM is managed by Eman Management (Private) Limited since December 16, 2015. ποΈ
- ORM offers Shariβah-compliant business model, providing riba-free income. βοΈ
- Key services: rental of gas and diesel generators, aftersales support, and O&M. π οΈ
- Rental power generation ranges from 100 kVA to 1770 kVA. β‘
- ORM has a credit rating of A- (long term) and A2 (short term) by PACRA. δΏ‘η¨θ―ηΊ§
- ORM possesses 149+ diesel & gas generators with a total capacity of 118 MW. β½
- ORM has 100+ O&M and Facility Management Industrial and Corporate contracts. π’
- ORM has over 1,500 manpower strength across Pakistan. π¨βπΌ
- ORM operates 30+ service vehicles all over Pakistan. π
- Total Assets: Rs 2,656 million (SEP 2025 Qtr) vs Rs 2,657 million (JUNE 2025). π°
- Net Profit: Rs 29 million (SEP 2025 Qtr) vs Rs 214 million (JUNE 2025). π
- EPS: Rs 0.39 (SEP 2025 Qtr) vs Rs 2.85 (JUNE 2025). π
- Return on Asset: 1.10% (SEP 2025 Qtr) vs 9% (JUNE 2025). π
- Return on Equity: 1.95% (SEP 2025 Qtr) vs 15% (JUNE 2025). π
π― Investment Thesis
Based on the current financial performance, a SELL recommendation is warranted for ORM. The significant decline in net profit and EPS indicates potential operational inefficiencies or market challenges. The price target should be revised downwards to reflect the reduced earnings potential. It would be more helpful if the company explained reasons behind the abrupt reduction in Revenue, Gross Profit and Net Profit. Without knowing the reasons, one would rather SELL.
Disclaimer: AI-generated analysis. Not financial advice.