⚡ Flash Summary

Trust Securities & Brokerage Ltd. (TSBL) reported a profit after taxation of PKR 19.82 million for the quarter ended September 30, 2025, a significant turnaround from a loss of PKR 6.99 million in the same period last year. Operating revenue more than doubled to PKR 105.87 million, driven by increased activity in the brokerage and investment sector. However, operating and administrative expenses also increased substantially, partially offsetting the revenue growth. The company’s earnings per share (EPS) stood at PKR 0.66 compared to a loss per share of PKR 0.23 in the corresponding period.

📌 Key Takeaways

• ✅ Operating revenue surged to PKR 105.87 million, a 148% increase compared to PKR 42.64 million in Q1 2024.
• 📈 Profit after taxation reached PKR 19.82 million, a stark contrast to the loss of PKR 6.99 million in the same quarter last year.
• 💸 Earnings per share (EPS) improved to PKR 0.66, compared to a loss per share of PKR 0.23 in Q1 2024.
• ⚠️ Operating and administrative expenses increased to PKR 91.66 million from PKR 55.24 million, indicating higher operational costs.
• 💼 Gain on sale of short-term investments decreased significantly to PKR 0.15 million from PKR 5.72 million.
• 💰 Finance costs decreased to PKR 2.57 million from PKR 4.17 million, potentially due to better financial management.
• 📊 Total assets increased to PKR 1,145.84 million from PKR 883.62 million, reflecting growth in investments and receivables.
• 🏦 Cash and bank balances increased substantially to PKR 75.56 million from PKR 7.87 million, indicating improved liquidity.
• 🧾 Trade debts increased to PKR 446.77 million from PKR 333.08 million, which could pose risks if not managed well.
• liabilities increased to PKR 734.33 million from PKR 490.16 million, which requires attention.
• 📉 Lease liabilities decreased slightly to PKR 9.34 million from PKR 11.12 million.
• 🚀 Reserves increased to PKR 102.17 million from PKR 82.34 million.

🎯 Investment Thesis

I recommend a BUY rating for TSBL based on its strong Q1 2025 performance, characterized by substantial revenue growth and a return to profitability. The company’s improved liquidity position and increased activity in its core operations suggest a positive outlook. My price target is PKR 35 per share, based on a forward P/E ratio of 15x and projected EPS of PKR 2.33 for FY2026, with a time horizon of 12-18 months. The price target is calculated based on the projected EPS for the next fiscal year and a forward P/E ratio that is slightly below the industry average. This accounts for some caution despite the improved liquidity position and increased core operation activities.