Strength-7

⚡ Flash Summary

Dewan Farooque Motors Limited announced the disclosure of interest by a substantial shareholder, Dewan M. Yousuf Farooqui, under PSX Regulation 5.6.4. On December 2, 2025, Farooqui sold 1,902,758 shares at a rate of PKR 25.55, decreasing his cumulative shareholding to 104,238,476 shares, representing 34.75%. Subsequently, on December 3, 2025, he sold another 1,347,242 shares at PKR 24.94, further reducing his stake to 102,891,234 shares, or 34.3%. The company confirms these transactions will be presented at the next board meeting and that the holding period exceeds six months, complying with relevant securities regulations.

📌 Key Takeaways

• 📉 Substantial Shareholder Activity: Dewan M. Yousuf Farooqui executed two transactions involving the sale of shares.
• 🗓️ Transaction Dates: Sales occurred on December 2 and December 3, 2025.
• 📊 Initial Sale: 1,902,758 shares sold on December 2, 2025, at PKR 25.55 per share.
• 📉 Subsequent Sale: 1,347,242 shares sold on December 3, 2025, at PKR 24.94 per share.
• 💼 Cumulative Holding (Dec 2): Shareholding decreased to 104,238,476 shares, representing 34.75%.
• 💼 Cumulative Holding (Dec 3): Further decreased to 102,891,234 shares, representing 34.3%.
• 📜 Regulatory Compliance: Transactions are under PSX Regulation 5.6.4.
• 🏢 Board Presentation: Transactions to be presented in the subsequent board meeting.
• ✅ Holding Period: Holding period for the transactions exceeds six months.
• 🛡️ Securities Act: Provisions of Sections 104 and 105 of the Securities Act, 2015 are not attracted.
• 🏢 Company Confirmation: The company confirms compliance with regulatory requirements.
• 👨‍💼 Director Involvement: The disclosure involves a Director/CEO/Executive.
• ⬇️ Decreasing Stake: The shareholder’s stake has decreased from 34.75% to 34.3% over two days.

🎯 Investment Thesis

Based on the announcement of a substantial shareholder selling shares, a SELL recommendation is appropriate in the short term. The reduction in stake may signal a lack of confidence or a change in investment strategy. A price target should be set based on the current market conditions and the potential downward pressure from these transactions. The time horizon is SHORT_TERM, focusing on potential near-term price adjustments.

⚡ Flash Summary

On December 3, 2025, Dewan Farooque Motors Limited disclosed transactions by a substantial shareholder, Dewan M. Yousuf Farooqui, under PSX Regulation 5.6.4. Farooqui sold 1,902,758 shares on December 2, 2025, at a rate of PKR 25.55, reducing his cumulative shareholding to 34.75%. Prior to this, he sold 1,347,242 shares on October 15, 2025, at PKR 24.94, resulting in a 34.3% cumulative shareholding. The transactions will be presented at a board meeting, and the holding period exceeds six months, complying with the Securities Act, 2015.

📌 Key Takeaways

• 🚨 Dewan M. Yousuf Farooqui sold 1,902,758 shares on December 2, 2025.
• 📉 Shares were sold at a rate of PKR 25.55 each.
• 📊 His cumulative shareholding decreased to 34.75% after the December 2 transaction.
• 🗓️ Previously, on October 15, 2025, he sold 1,347,242 shares.
• 💰 The October sale occurred at a rate of PKR 24.94 per share.
• 📉 Before the December sale, his cumulative shareholding was 34.3%.
• 🏢 Transactions will be presented at a board meeting for consideration.
• ✅ The holding period for the transactions exceeds six months.
• 📜 Complies with Sections 104 and 105 of the Securities Act, 2015.
• 📄 Disclosure made under PSX Regulation 5.6.4.
• 👤 Muhammad Hanif German, Director & Company Secretary, signed the disclosure.
• 👤 Mehmood-ul-Hassan Asghar, Director, also signed the disclosure.
• 📍 Company’s registered office is in Karachi, Pakistan.

🎯 Investment Thesis

SELL. The continued selling by a substantial shareholder raises concerns about the company’s future prospects and could lead to decreased investor confidence. A price target cannot be determined with the provided data, but a sell recommendation is appropriate given the negative sentiment. Time Horizon: Short Term.