⚡ Flash Summary

Trust Modaraba’s financial results for the quarter ended September 30, 2025, reveal a decline in profitability compared to the same period last year. The company reported a profit after taxation of PKR 3.78 million, a significant decrease from PKR 6.29 million in September 2024. This drop in earnings is reflected in the decreased earnings per certificate, which fell from PKR 0.211 to PKR 0.127. While revenue streams such as profit on musharakah finances remain robust, other income sources have contracted, impacting overall financial performance.

📌 Key Takeaways

• 📉 Profit after taxation decreased to PKR 3.78 million in Sep 2025 from PKR 6.29 million in Sep 2024.
• ⚠️ Earnings per certificate dropped to PKR 0.127 in Sep 2025 from PKR 0.211 in Sep 2024.
• ⬆️ Income from ijarah decreased to PKR 1.12 million in Sep 2025 from PKR 2.61 million in Sep 2024.
• ⬆️ Profit on murabaha finances decreased to PKR 0.70 million in Sep 2025 from PKR 1.05 million in Sep 2024.
• 📊 Profit on musharakah finances slightly increased to PKR 12.81 million in Sep 2025 from PKR 12.69 million in Sep 2024.
• 💰 Gain on sale of short term investments decreased to PKR 1.77 million in Sep 2025 from PKR 0.49 million in Sep 2024.
• 💼 Other income decreased to PKR 0.42 million in Sep 2025 from PKR 3.62 million in Sep 2024.
• 📈 Unrealized gain on revaluation of financial assets increased to PKR 0.99 million in Sep 2025 from PKR -1.28 million in Sep 2024.
• расходов Operating expenses increased to PKR 11.71 million in Sep 2025 from PKR 10.87 million in Sep 2024.
• 💸 Modaraba Management Company’s fee decreased to PKR 0.61 million in Sep 2025 from PKR 0.85 million in Sep 2024.
• 🏢 Total assets increased to PKR 402.52 million in Sep 2025 from PKR 401.96 million in June 2025.
• 🏦 Cash and bank balances decreased to PKR 8.85 million in Sep 2025 from PKR 9.06 million in June 2025.
• Liabilities Current liabilities slightly decreased to PKR 31.39 million in Sep 2025 from PKR 33.74 million in June 2025.
• ✅ Total equity increased to PKR 352.53 million in Sep 2025 from PKR 348.75 million in June 2025.
• ❌ No cash dividend, bonus shares, or right shares were recommended for certificate holders.

🎯 Investment Thesis

Based on the declining profitability and negative trends observed in various income streams, a SELL recommendation is warranted for Trust Modaraba. The reduced earnings per certificate and liquidity concerns raise questions about the company’s near-term financial health. A price target of PKR 2.50 is set, reflecting a conservative valuation based on the current EPS and prevailing market conditions. The time horizon for this recommendation is SHORT_TERM, as the negative trends are expected to persist in the coming quarters.