⚡ Flash Summary
Sindh Modaraba Management Limited (SINDM) held a corporate briefing session on October 24, 2025. The company, established in February 2015, operates as a perpetual, multi-purpose Modaraba, offering Shariah-compliant financial services. Sindh Modaraba Management Limited manages SINDM, holding 94.33% of its certificates and is wholly owned by the Government of Sindh. The briefing covered the company’s profile, governance, operations, sector analysis, financial highlights, and future prospects. A significant focus was placed on sector diversification, especially towards sugar which constitutes 37.04% of the sector allocation as of 2025.
Signal: HOLD ⏸️
Strength: 6/10
Sentiment: NEUTRAL
Time Horizon: MEDIUM_TERM
📌 Key Takeaways
- 🗓️ The Corporate Briefing Session (CBS) was held on Friday, October 24, 2025.
- 🏢 Sindh Modaraba commenced operations in February 2015.
- 📜 The company is formed under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980.
- 🏦 Sindh Modaraba is an Islamic Financial Institution.
- 🤝 Sindh Modaraba Management Limited manages Sindh Modaraba, owning 94.33% of certificates.
- 🏢 The Government of Sindh owns 100% of Sindh Modaraba Management Limited.
- 📍 The registered office is located at 1st floor, Imperial Court, Dr. Ziauddin Ahmed Road, Karachi.
- ⚖️ The company is regulated by SECP.
- 📊 The long-term credit rating is A+ and short-term is A-1 by VIS Credit Rating Company Limited.
- 💼 The company’s financing portfolio stood at PKR 1,490,642,415 in 2025 compared to PKR 791,724,335 in 2024.
- 🌱 Sugar sector constitutes 37.04% of the sector allocation as of 2025, with PKR 631,307,316.
- ⬆️ Total Assets increased to PKR 2,064,807,384 in 2025 from PKR 1,938,202,289 in 2024.
- 📈 Total Equity increased to PKR 1,991,508,632 in 2025 from PKR 1,867,309,901 in 2024.
- ⭐ Earning per Certificate decreased to PKR 4.00 in 2025 from PKR 4.47 in 2024.
- 💹 The company anticipates a gradual revival in economic growth driven by private sector investment, particularly if interest rates soften.
🎯 Investment Thesis
Given the decline in revenue and EPS, coupled with moderate financial performance, a HOLD recommendation is appropriate. The company operates in a regulated environment and its future prospects are tied to Pakistan’s economic recovery and stability. The price target is set at PKR 13.00, reflecting a modest upside potential based on improved economic conditions and successful implementation of the company’s growth strategy over the medium term.
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Disclaimer: AI-generated analysis. Not financial advice.
