FNEL

⚡ Flash Summary

First National Equities Limited (FNEL) reported a significant loss for the year ended June 30, 2025, with a loss after income tax of PKR 78.68 million compared to a loss of PKR 51.47 million in the prior year. The company’s operating revenue decreased substantially from PKR 33.92 million to PKR 8.56 million. This decline in revenue and increased losses raise concerns about the company’s financial health and operational efficiency. The statement of cash flows shows significant cash outflow from operating and investing activities.

📌 Key Takeaways

• 📉 Operating revenue plummeted by 74.77% from PKR 33.92 million in 2024 to PKR 8.56 million in 2025.
• ❗ Loss after income tax widened by 52.85% from PKR 51.47 million in 2024 to PKR 78.68 million in 2025.
• ⛔ Loss per share increased from PKR 0.19 in 2024 to PKR 0.29 in 2025.
• Investments generated a gain of PKR 6.31 million in 2025, a swing from a loss of PKR 6.05 million in 2024. 💰
• ⚖ Unrealized gain on re-measurement of investments improved to PKR 4.89 million from a loss of PKR 4.39 million in 2024.
• 💸 Administrative expenses decreased significantly from PKR 73.42 million to PKR 41.77 million.
• 💵 Finance costs increased slightly from PKR 24.06 million to PKR 25.30 million.
• 🙁 Loss before levies and taxation increased from PKR 50.26 million to PKR 71.39 million.
• Taxation expense decreased from PKR 277,609 to an income of PKR 6,689,457.
• Cash outflows from operating activities increased from PKR 59.95 million to PKR 85.48 million. 💸
• Cash outflows from investing activities decreased from PKR 62.69 million generated in 2024 to PKR 147.63 million utilized in 2025. 💸
• The company’s cash and cash equivalents decreased from PKR 274.34 million to PKR 9.23 million. 📉
• Non-current assets increased from PKR 1.23 billion to PKR 1.37 billion. 📈
• Total liabilities decreased from PKR 708.41 million to PKR 634.37 million. 📉

🎯 Investment Thesis

Given the poor financial performance, increasing losses, and strained cash flow, a SELL recommendation is warranted for FNEL. The drastic decline in revenue and the substantial net loss indicate significant challenges for the company’s future prospects. A price target of PKR 0.10 is set, based on the continued losses and the low cash position, with a short-term time horizon of 6 months, reflecting the high uncertainty surrounding the company’s ability to turn around its performance. The recommendation is based on the expectation of continued losses and the potential for further deterioration of the company’s financial position.