⚡ Flash Summary

Saudi Pak Consultancy Company Limited (SPCL) held a corporate briefing session for FY24-25. The company, formerly known as Saudi Pak Leasing Company Limited, has shifted its business focus to consultancy services. The company is actively pursuing recovery efforts of inherited decrees and settlements to improve cash inflows, aiming for PKR 100 million by June-26. SPCL is also focused on settling liabilities and reducing negative equity, with a target of eliminating negative equity by PKR 100 million by June-26. Resumption of trading shares at PSX is expected by January 1, 2026.

📌 Key Takeaways

• 1. 🏢 Company Profile: Formerly Saudi Pak Leasing Company Limited, now Saudi Pak Consultancy Company Limited.
• 2. 📅 Incorporation: Established in Pakistan on January 8, 1991, and listed on the Pakistan Stock Exchanges.
• 3. 📍 Offices: Operates from Karachi and has a branch in Lahore.
• 4. 💼 Business Focus: Shifted from asset leasing to consultancy services.
• 5. 🤝 Major Shareholder: Saudi Pak Industrial & Agricultural Investment Company Limited holds 35.06% of ordinary share capital and 63% of preference share capital.
• 6. 💰 Authorized Share Capital: 2 Billion (Preferred: 1 Billion, Ordinary 1 Billion).
• 7. 💸 Issued, Subscribed & Paid-Up Capital: 979.813 Million (Preferred: 528.208 Million, Ordinary 451.605 Million).
• 8. 🏦 Recovery Efforts: Aiming to recover PKR 100 Million by June-26.
• 9. 📉 Settlement of Liabilities: Settled PKR 46.700 million with a haircut of PKR 96.800 million.
• 10. ➖ Reduction of Negative Equity: Achieved PKR 61 Million reduction till June 25; targetting PKR 100 million reduction by June-26.
• 11. ✅ Regulatory Compliance: New election of Board of Directors held on April 22, 2025.
• 12. 🎯 Sustained Profitability: Focus on maintaining profitability through efficient recovery processes.
• 13. 📈 Operational Stability: Enhancement of financial health and stability is targeted by June-26.
• 14. 🔄 Resumption of Trading: Shares of SPCCL expected to resume trading at PSX by January 01, 2026.

🎯 Investment Thesis

Given the ongoing restructuring, negative equity, and uncertainty surrounding the new consultancy business, a HOLD rating is appropriate. While recovery efforts and debt restructuring are positive steps, the company needs to demonstrate consistent profitability and establish a stable consultancy business before considering a more favorable rating. Price target is difficult to determine due to the company’s current financial state.