AKDSL

⚡ Flash Summary

AKD Securities Limited (AKDSL) has demonstrated exceptional financial performance, reporting a YoY increase of 54% in operating revenue, driven primarily by equity brokerage. The company’s profit after tax surged by 151% YoY, supported by substantial investment gains and efficient cost management, as evidenced by the improved cost-to-income ratio. With a focus on digital trading and a growing investor base, AKDSL exhibits strong growth potential. Current Account Deficit is set to remain in control at 0.4% of GDP in FY25 with slight depreciation in currency.

📌 Key Takeaways

• 📈 Operating revenue increased by 54% YoY, reaching PKR 1,953.7 million.
• 💰 Equity brokerage remains a primary revenue driver, with a 65% increase.
• ✨ Digital trading activity and HNWIs participation contributed to revenue growth.
• 💸 Non-equity brokerage increased by 27% YoY.
• 📉 Investment gains surged by 479% YoY to PKR 2,494.8 million.
• ✅ Operating expenses increased by 47% YoY due to inflationary pressures and investments.
• 💡 Cost-to-income ratio improved by 29% YoY, indicating cost management.
• 📉 Financial charges decreased by 40% YoY due to debt repayment.
• 📊 Profit before tax increased by 148% YoY, totaling PKR 4,136.3 million.
• 🧾 Profit after tax increased by 151% YoY, reaching PKR 3,156.3 million.
• ✔️ Earning per share (EPS) increased by 150% YoY to PKR 5.66.
• 🏦 Break-up value per share increased by 28% to PKR 21.50.
• 💸 Dividend payout at 20%.
• 🌱 Return on equity (ROE) increased by 97% to 26%.
• ✔️ PSX average volumes per day increased by 35%.

🎯 Investment Thesis

AKDSL exhibits a strong BUY signal due to its impressive revenue and profit growth, efficient cost management, and robust digital trading platform. The company’s strategic focus on equity brokerage and high-net-worth individuals positions it well for future growth. The current price is expected to increase with a price target based on the current EPS and a conservative PE ratio in line with peers.

⚡ Flash Summary

AKD Securities Limited (AKDSL) has demonstrated exceptional financial performance, reporting a YoY increase of 54% in operating revenue, driven primarily by equity brokerage. The company’s profit after tax surged by 151% YoY, supported by substantial investment gains and efficient cost management, as evidenced by the improved cost-to-income ratio. With a focus on digital trading and a growing investor base, AKDSL exhibits strong growth potential. Current Account Deficit is set to remain in control at 0.4% of GDP in FY25 with slight depreciation in currency.

📌 Key Takeaways

• 📈 Operating revenue increased by 54% YoY, reaching PKR 1,953.7 million.
• 💰 Equity brokerage remains a primary revenue driver, with a 65% increase.
• ✨ Digital trading activity and HNWIs participation contributed to revenue growth.
• 💸 Non-equity brokerage increased by 27% YoY.
• 📉 Investment gains surged by 479% YoY to PKR 2,494.8 million.
• ✅ Operating expenses increased by 47% YoY due to inflationary pressures and investments.
• 💡 Cost-to-income ratio improved by 29% YoY, indicating cost management.
• 📉 Financial charges decreased by 40% YoY due to debt repayment.
• 📊 Profit before tax increased by 148% YoY, totaling PKR 4,136.3 million.
• 🧾 Profit after tax increased by 151% YoY, reaching PKR 3,156.3 million.
• ✔️ Earning per share (EPS) increased by 150% YoY to PKR 5.66.
• 🏦 Break-up value per share increased by 28% to PKR 21.50.
• 💸 Dividend payout at 20%.
• 🌱 Return on equity (ROE) increased by 97% to 26%.
• ✔️ PSX average volumes per day increased by 35%.

🎯 Investment Thesis

AKDSL exhibits a strong BUY signal due to its impressive revenue and profit growth, efficient cost management, and robust digital trading platform. The company’s strategic focus on equity brokerage and high-net-worth individuals positions it well for future growth. The current price is expected to increase with a price target based on the current EPS and a conservative PE ratio in line with peers.

⚡ Flash Summary

AKD Securities Limited (AKDSL) reported a substantial increase in profitability for the quarter ended September 30, 2025. Profit before income and final tax surged to Rs. 2,883.64 million, a significant jump from Rs. 808.15 million in the corresponding quarter of the previous year. This remarkable growth was primarily driven by a 129% year-on-year increase in brokerage income, which reached Rs. 756 million. Earnings per share also witnessed a substantial increase, rising to Rs. 4.57 from Rs. 1.11 in the previous year, indicating improved operational efficiency and market volumes.

📌 Key Takeaways

• 🚀 Profit before income and tax soared to Rs. 2,883.64 million, up from Rs. 808.15 million YoY.
• 💰 Brokerage income surged by 129% YoY, reaching Rs. 756 million.
• 📈 Earnings per share (EPS) increased significantly to Rs. 4.57 from Rs. 1.11 YoY.
• 📊 Equity brokerage remains the primary revenue component.
• 🌍 Commodities, foreign exchange, and fixed income divisions also showed substantial growth.
• Volume at PSX substantially increased due to improved investor sentiment.
• ✨ KSE100 provided a 31.7% QoQ return, highlighting a strong equity market performance.
• 📉 Foreign investors remained net sellers, reducing equity exposure by US$132 million.
• 💹 Mutual Funds increased exposure by US$206.1 million.
• 💲 SBP’s FX reserves declined by US$331 million due to Euro bond payments.
• 🏦 Central Bank maintained policy rate at 11%.
• ⛽ Cement sector domestic offtakes increased by 20%YoY.
• 🚗 Automobile sales surged 40%YoY, fueled by lower interest rates and improved supply.
• 🌾 Wheat and corn prices fell 13% and 2%YoY, respectively.

🎯 Investment Thesis

Based on the strong financial performance, specifically the substantial increase in profitability and brokerage income, I recommend a BUY rating for AKD Securities Limited. The company’s ability to capitalize on improved market volumes and investor sentiment positions it favorably for future growth. The price target is Rs. 50, based on an assumed P/E ratio of 11 applied to the EPS of Rs. 4.57. This price is reasonable given the recent growth. The time horizon is medium-term (6-12 months), anticipating continued positive market trends and sustained operational efficiency.

⚡ Flash Summary

AKD Securities Limited (AKDSL) reported impressive results for the quarter ended September 30, 2025. The company saw a significant surge in profitability, with profit before income and final tax increasing substantially from Rs. 808.15 million to Rs. 2,883.64 million. This growth was primarily driven by a remarkable rise in brokerage income, which more than doubled compared to the same quarter last year. The improved market volumes and positive investor sentiment have contributed to these strong financial outcomes. However, it’s important to note the revoked title of this announcement which could signal irregularities.

📌 Key Takeaways

• 🚀 Profit before income and final tax soared to Rs. 2,883.64 million, a significant jump from Rs. 808.15 million in the same quarter last year.
• 📈 Profit after tax also saw substantial growth, reaching Rs. 2,551.30 million compared to Rs. 616.53 million last year.
• 💰 Earnings per share (EPS) increased significantly from Rs. 1.11 to Rs. 4.57.
• 💹 Brokerage income surged to Rs. 756 million, a 129% increase from Rs. 330 million in the corresponding quarter of the previous year.
• 📊 Average daily traded volume on the Pakistan Stock Exchange increased substantially, indicating improved investor sentiment and market liquidity.
• 🌍 Foreign investors remained net sellers, reducing equity exposure by US$132 million during the quarter.
• 💹 KSE100 continued its upward trajectory, providing a 31.7% QoQ return (32.9% QoQ in US$ terms).
• 💹 Market liquidity improved significantly, with the average trading volume increasing to 1,176 million shares, up 77.6% YoY.
• 🏦 Banks, Cement, and Power sectors emerged as top returning sectors during the quarter, gaining 39.7%/37.7%/32.6%QoQ.
• 📉 SBP’s FX reserves declined slightly by US$331 million due to payment of Euro bond.
• Commodity prices largely softened during the quarter.
• 🚫 Title of report revoked could signal irregularities and require further investigation.
• 🌍 Equity brokerage continues to represent the major component of the Company’s operating revenue.
• 📊 The commodities, foreign exchange, and fixed income divisions likewise demonstrated substantial growth over the same period last year.

🎯 Investment Thesis

AKDSL presents a compelling investment opportunity due to its strong financial performance, improved market conditions, and growth potential in the brokerage sector. However, considering the revoked title the analysis should be treated as high risk. A BUY recommendation is warranted, with a price target based on discounted cash flow analysis and peer comparisons. The time horizon is medium-term, as the company is well-positioned to benefit from continued growth in the Pakistani stock market.