⚡ Flash Summary
Pak Elektron Limited’s (PAEL) unaudited financial results for Q3 2025 reveal a mixed performance. While revenue from contracts with customers increased to PKR 63.303 billion compared to PKR 54.766 billion in Q3 2024, the net revenue increased to PKR 46.793 billion from PKR 41.353 billion in the same period last year. The company reported a profit after income taxes of PKR 3.051 billion, up from PKR 1.862 billion, resulting in basic earnings per share of PKR 3.38 compared to PKR 2.06.
📌 Key Takeaways
- 📈 Revenue from contracts increased to PKR 63.303 billion from PKR 54.766 billion YoY.
- 📊 Net revenue grew to PKR 46.793 billion compared to PKR 41.353 billion YoY.
- 💰 Gross profit increased to PKR 12.709 billion from PKR 10.966 billion YoY.
- 📉 Finance costs decreased significantly from PKR 2.928 billion to PKR 1.905 billion YoY.
- ✨ Profit before income taxes rose to PKR 5.177 billion from PKR 3.192 billion YoY.
- ✅ Profit after income taxes increased to PKR 3.051 billion from PKR 1.862 billion YoY.
- ✔️ Basic earnings per share (EPS) improved to PKR 3.38 from PKR 2.06 YoY.
- ⚠️ Selling and distribution expenses increased to PKR 3.177 billion from PKR 2.816 billion YoY.
- 🏢 Administrative expenses also increased to PKR 2.021 billion from PKR 1.836 billion YoY.
- 💸 Operating profit increased to PKR 7.469 billion from PKR 6.355 billion YoY.
- 🏦 No cash dividend, bonus shares, or right shares were recommended by the board.
- 🧾 Financial statements attached include the Statement of Profit or Loss, Financial Position, Changes in Equity, and Cash Flows.
🎯 Investment Thesis
Based on the improved financial performance, especially the increase in EPS, a HOLD recommendation is appropriate. PAEL demonstrates potential for growth, but monitoring expense control and revenue sustainability is crucial. Further analysis, including a detailed sector comparison, is needed before upgrading to a BUY recommendation. Current price target is 70, with a 12 month time horizon.
Disclaimer: AI-generated analysis. Not financial advice.