MCB Bank Limited (MCB): 2QCY25 EPS is recorded at PKR 12.3, DPS PKR 9.0 – By Foundation Research

Aug 6 2025


Foundation Securities


  • MCB Bank announced its 2QCY25 results today reporting earnings of PKR 14.6Bn (EPS: PKR 12.3), ↓13.2/0.5% YoY/QoQ. This takes 1HCY25 profitability to PKR 24.7/sh (down 16% YoY). The result is in line with our expectations. The bank also announced an interim dividend of PKR 9.0/sh taking 1H payout to PKR 18.0/sh.
  • Net Interest Income (NII) of the bank declined by 3% YoY to PKR 39.9Bn in 2Q. As for 1H, NII underwent a decline of 5.6% YoY. Policy rate has reduced to 11% in Jun’25 from 20.5% a year ago, however, the bank’s robust CA ratio, robust investment income stream and sharp decline in deposit costs have limited the impact on the topline.
  • Non-funded income of the bank was reported at PKR 9.4Bn in the outgoing quarter, a decline of 4.3% YoY mainly on account of mild 5/8% YoY decline in fee and forex income respectively. As for capital gains, the bank only realized PKR 16Mn against PKR 75Mn in the SPLY. As for 1H, NFI has increased to PKR 19.9Bn, up 2.3% YoY.
MCB Bank Limited (MCB): 2QCY25 Earnings Call – by Taurus Research

Aug 19 2025


Taurus Securities


  • MCB is currently operating with 1,395 branches in Pakistan and 8 foreign branches. Its market share in deposits and advances stands at 5.63% and 4.86%, as of Jun’25. Home remittances market share as of Jun’25 was 11.26%.
  • During the period, the Bank achieved unprecedented growth of PKR 256Bn in current accounts, taking its CA ratio to 54% as of Jun’25. The management expects to continue the momentum and achieve a 55% CA ratio by the year-end. For the year, MCB is targeting deposits growth of ~22%, with growth in CA expected to be much more than that
MCB Bank Limited (MCB): 2QCY25 EPS is recorded at PKR 12.3, DPS PKR 9.0 – By Foundation Research

Aug 6 2025


Foundation Securities


  • MCB Bank announced its 2QCY25 results today reporting earnings of PKR 14.6Bn (EPS: PKR 12.3), ↓13.2/0.5% YoY/QoQ. This takes 1HCY25 profitability to PKR 24.7/sh (down 16% YoY). The result is in line with our expectations. The bank also announced an interim dividend of PKR 9.0/sh taking 1H payout to PKR 18.0/sh.
  • Net Interest Income (NII) of the bank declined by 3% YoY to PKR 39.9Bn in 2Q. As for 1H, NII underwent a decline of 5.6% YoY. Policy rate has reduced to 11% in Jun’25 from 20.5% a year ago, however, the bank’s robust CA ratio, robust investment income stream and sharp decline in deposit costs have limited the impact on the topline.
  • Non-funded income of the bank was reported at PKR 9.4Bn in the outgoing quarter, a decline of 4.3% YoY mainly on account of mild 5/8% YoY decline in fee and forex income respectively. As for capital gains, the bank only realized PKR 16Mn against PKR 75Mn in the SPLY. As for 1H, NFI has increased to PKR 19.9Bn, up 2.3% YoY.
MCB Bank Limited (MCB): Result Review – By Topline Research

Aug 6 2025


Topline Securities


  • MCB Bank (MCB) announced its 2Q2025 results today, reporting consolidated earnings of Rs14.6bn (EPS: Rs12.3), down 13% YoY and flat QoQ. This takes 1H2025 earnings to Rs29.2bn (EPS: Rs24.7), down 16% YoY.
  • The 2Q2025 results came higher than industry expectations due to higher-than-expected Net Interest Income (NII).
  • Net Interest Income (NII) for 2Q2025 settled at Rs39.9bn down 4% YoY while up 2% QoQ due to higher asset yields.
MCB Bank Limited (MCB): EPS clocked in at PKR 11.4 – in line with expectations – By IIS Research

Aug 6 2025


Ismail Iqbal Securities


  • MCB Bank Limited has announced 2QCY25 result where the bank has posted unconsolidated earnings of PKR 11.39/sh, down by 12% YoY and 2% QoQ. The result is inline with our expectations. The bank has announced interim cash dividend of PKR 9/sh, taking 1HCY25 dividend to PKR 18/sh.
  • Net Interest Income (NII) declined by 2% YoY but rose by 3% QoQ, indicating that the major impact of asset repricing has already been incurred. Non markup income down by 9% YoY and 10% QoQ, majorly due to decline of 13% in fee and commission income.
  • Operating expenses increased by 16% YoY and flat on QoQ basis. MCB recorded provision reversal of PKR 1.8bn vs. PKR 2.5bn in 1QCY25, taking total provision reversal to PKR 4.3bn in 1HCY25. The ETR in this quarter clocked in at 53.1% vs. 49.0% in SPLY (52.9%: 1QCY25)
MCB Bank Limited (MCB): 2QCY25Result Review – By Taurus Research

Aug 6 2025


Taurus Securities


  • 2QCY25 EPS: PKR 12.3. 2QCY25 PAT down 13%YoY. 1HCY25 EPS: PKR 24.7; 1HCY25 PAT down 15% over the SPLY. In addition, the Bank also announced an interim cash dividend of PKR 9.0/sh. taking YTD payout to PKR 18.0/sh.
  • Net Interest Income (NII): Down 4%YoY/up 2%QoQ. Wherein, pressure on margins seems to have come from lower yields on advances and investments, coupled with uptick in the cost of funds due to elevated leverage.
  • Non-Markup Income (NMI): Down 3%YoY/8%QoQ. Owing to 14%QoQ drop in fee income along with significant decrease in dividend income. Income from foreign exchange was up 20%QoQ.  The bank also booked meagre capital gains in 2QCY25.
MCB Bank Limited (MCB): 1QCY25 Earnings Call Key Takeaways - By Taurus Research

Apr 30 2025


Taurus Securities


  • MCB is currently operating with 1,395 domestic and 8 foreign branches with over 9.1Mn customers. Wherein, the Bank’s deposits market share stands at 6.04%, advances market share stands at 5.72%, and remittances market share stands at 11.5%, respectively. The management informed of growing competition in the home remittance business affecting fee income.
  • 1QCY25 PBT was PKR 29.3Bn, down 10%YoY. NIM stood at PKR 35.2Bn, down 7.6%YoY. Spread was down ~150bpsYoY.
  • Deposits clocked-in at PKR 2.1Trn, with current accounts arriving at PKR 1.1Trn. The CA ratio has improved to 51%, and the Bank aims to achieve a 55% CA ratio by the year-end. The management is targeting 25-26% growth in total deposits during the year and at least 25%YoY growth in current accounts in CY25. There was no significant impact of MDR on the conventional business. However, for MCB Islamic the full year impact of revised MDR is likely to be ~PKR 2Bn.
MCB Bank Limited (MCB): Result Review: MCB 1QCY25 EPS Rs11.7, DPS Rs9 - By Sherman Research

Apr 23 2025


Sherman Securities


  • MCB Bank Limited (MCB) announced 1QCY25 results today wherein the bank posted an unconsolidated net earnings of Rs13.8bn (EPS Rs11.7) down 17%YoY. The decrease in earnings is primarily attributed to a decline in interest income.
  • The bank announced a cash dividend of Rs9 per share in 1QCY25.
  • MCB’s interest earned clocked in at Rs69.8bn (down 22%YoY), while interest expense for the period stood at Rs34.7bn (down 32%YoY). As a result, NII declined to Rs35.2bn, (down 8%YoY).
MCB Bank Limited (MCB): 1QCY25 EPS arrives at PKR 12.4; PAT down 17%YoY/ up 39%QoQ - By Taurus Research

Apr 23 2025


Taurus Securities


  • 1QCY25 EPS: PKR 12.4. 1QCY25 PAT down 17%YoY – in line with expectations. MCB also announced a DPS of PKR 9.00.
  • Net Interest Income (NII): Down 8%YoY/1%QoQ driven by pressure on margins on the back of lower yields on the asset side following reduction in interest rates, offset by lower interest expenses due to decrease in the cost of funds on account of lower interest rates and the revised MDR regime going into effect from Jan’25.
  • Non-Markup Income (NMI): Up 9%YoY. But fell 15% on a sequential basis mainly due to the almost complete absence of capital gains during the quarter and 25%QoQ reduction in other income
MCB Bank Limited (MCB): Defensive play with steady gains - By Insight Research

Mar 17 2025


Insight Securities


  • MCB boasts one of the highest current account mixes in the banking sector. MCB presents a compelling investment case due to its attractive dividend yield and stable strategic approach. The bank has been focusing on building a low-cost deposit base and with interest rates dropping sharply in the last few quarters resulting in narrowing NIMs and the removal of ADR-based taxation, the bank is now more focused on increasing zero-cost deposits in its mix.
  • We maintain our BUY stance on MCB, with a DDM & P/BV based target price of PKR345/sh for Dec’25. The stock is currently trading at a P/E & P/B of 6.9x & 1.3x on CY25 estimates, with a DY of ~13%
  • Key risk to our investment thesis are i) Lower than estimated growth in current accounts, ii) Deterioration in asset quality, iii) Higher than estimated operating expenses and iv) Abrupt changes in regulatory framework.
MCB Bank (MCB): 4Q2024 EPS at Rs8.87 (Earnings in line with industry expectations) - By Topline Research

Feb 6 2025


Topline Securities


  • MCB Bank (MCB) announced its 4Q2024 result today, where the bank recorded consolidated earnings of Rs10.5bn (EPS of Rs8.87), down 38% YoY and 42% QoQ. The result came in line with industry expectations.
  • This takes full year 2024 earnings to Rs63.2bn (EPS of Rs53.35), down 3% YoY
  • Alongside result, bank also announced a final cash dividend of Rs9/share, taking 2024 dividend to Rs36/share.
Pakistan Economy: Aug’25 CPI likely to clock in at 4.1% - By Insight Research

Aug 29 2025


Insight Securities


  • Headline inflation is estimated at ~4.1% for Aug’25, compared to ~9.6% in SPLY and ~4.1% in preceding month. On MoM basis, inflation is expected to inch up by ~0.4%, amid increase in prices of food items the impact of which has been negated by lower electricity charges and decline in LPG price.
  • Within the SPI basket, items that recorded significant increase in prices during the period are as follows, Tomato (38.8↑%), Onions (21.5↑%), Eggs (9.9%↑), Fresh vegetables (4.0%↑) & Wheat (4.0%↑). On the flip side, prices of the following items eased off during the month, Fresh fruits (9.9%↓), LPG (9.8%↓), Potato (5.1%↓), Pulse moong (4.6%↓) & Sugar (4.1%↓).
  • We anticipate that the SBP will keep the policy rate unchanged in upcoming MPC, as the full impact of cumulative 1,100bps reduction in policy rate is still unfolding. The real sector remains in recovery mode following the strain of elevated inflation and sharp currency depreciation, both of which eroded purchasing power of masses. Furthermore, central bank’s tone in the last MPC suggested a pause for now, which will provide clarity to the market and encourage credit offtake in the coming months, given that no immediate cut in borrowing costs is expected. Hence, it appears prudent to maintain the policy rate at its current level and wait for the steep decline in interest rates to translate into real economic activity.
Bank Islami Pakistan Limited (BIPL): 2QCY25 Corporate Briefing – By Taurus Research

Aug 29 2025


Taurus Securities


  • BIPL is currently operating with 544 branches across Pakistan. Number of accounts as of Jun’25 are ~1.7Mn.
  • During CY25, the Bank launched AIK Digital App, which is one of its kind Islamic digital app, offering complete digital banking experience. The Bank is also planning to relocate its head-office, for which it has acquired a 32-storey building. Moreover, the Bank has also upgraded its core banking system to R-14 to enhance operational efficiencies and services.
Engro Holdings Limited (ENGROH): 1HCY25 Analyst Briefing Takeaways – By Foundation Research

Aug 29 2025


Foundation Securities


  • Engro Holdings Limited (ENGROH PA) held its Analyst Briefing to discuss the company’s financial/operational performance during 1HCY25 and prospects. The following are key takeaways of the session.
  • To recall, ENGROH’s PAT underwent a jump of 11.3x YoY in 2Q to PKR 69.3Bn due to thermal asset adjustments and re-measurements. However, excluding thermal asset adjustments, normalized PAT stood at only ~PKR 1.3Bn, reflecting the true underlying business performance. During 1HCY25, PAT reached PKR 73.3Bn versus PKR 13.8Bn in SPLY, recording a 5.3x YoY increase.
Morning News: ADB pledges $410m for Reko Diq project – By IIS Research

Aug 29 2025


Ismail Iqbal Securities


  • Out of the total $6 billion funding committed by all international lenders for Reko Diq, the Asian Development Bank (ADB) has committed to provide financing of $410 million.
  • Federal Minister for Petroleum Ali Pervaiz Malik on Thursday welcomed the interest of the Japan Bank for International Cooperation (JBIC) in Pakistan’s landmark Reqo Diq mining project, terming it a pivotal moment for strengthening bilateral cooperation in the mining and energy sectors.
Technical Outlook: KSE-100 targeting the 30-DMA; stay cautious – By JS Research

Aug 29 2025


JS Global Capital


  • The KSE-100 index witnessed range bound activity to close at 147,344, down 151 points DoD. Volumes stood at 935mn shares compared to 857mn shares traded in the previous session. The index is expected to test support between 146,700 and 147,210 levels as a fall below, will extend the decline towards 146,057, followed by the 30-DMA at 143,859 level. However, any upside will face resistance in the range of 148,040-148,370 levels. The RSI and the MACD are moving down, supporting a corrective view. We recommend investors to stay cautious at current levels. The support and resistance are at 147,021 and 147,854 levels, respectively.
Morning News: SBP forex reserves rise by USD 18mn to USD 14.27bn – By Alpha-Akseer Research

Aug 29 2025


Alpha Capital


  • Pakistan’s foreign exchange reserves held by the central bank rose for a third straight week and stood at USD 14.27bn as of August 22, the State Bank of Pakistan (SBP) said on Thursday.
  • Following the ongoing sugar crisis, Pakistan may now face a potential wheat flour crisis, as national wheat stocks stand at 33.47mn tons, slightly below the country’s annual consumption requirement of 33.58mn tons.
Morning News: RLNG arrears recovery: PD-private sector ‘alliance’ takes on Ogra – By HMFS Research

Aug 29 2025


HMFS Research


  • The Power Division and the private sector on Thursday appeared to have formed an undeclared alliance against the Oil and Gas Regulatory Authority (Ogra) over the recovery of RLNG arrears from 2015 to 2024 — a move that, if enforced, would impact both industry and power plants, with the ultimate burden shifting to electricity consumers. The joint position was evident during a public hearing at the National Electric Power Regulatory Authority (NEPRA) regarding uniform Fuel Charges Adjustment (FCA) for July 2025 across the country, including K-Electric’s service area.
  • Pakistan’s economic stability faces renewed challenges as the Finance Division warns that flood-related damages could intensify fiscal pressures and disrupt food supplies across affected areas as well as pose a risk in achieving agriculture sector’s targeted growth. The monthly economic update and outlook August 2025 noted that adverse climatic events (heavy rainfall and floods) pose a risk in achieving agriculture sector’s targeted growth.
D.G. Khan Cement Company Limited (DGKC): Result Review — Earnings rise on surging margins – By AKD Research

Aug 28 2025


AKD Securities


  • D.G. Khan Cement Company Ltd. (DGKC) announced its 4QFY25 financial results, reporting earnings of PkR3.2bn (EPS: PkR7.2), compared to a loss of PkR1.7bn (LPS: PkR3.9) in SPLY. The result is above our expectations, mainly due to im proved margins and lower ETR during the quarter. Additionally, company an nounced a final cash payout of PkR2.0/sh.
  • Revenue declined by 1%YoY to PkR16.8bn, compared to PkR17.0bn in SPLY, driven by 1.2%YoY decline in total offtakes to 1.28mn tons.
  • Gross margins improved to 31.8% from 7.9% in SPLY, supported by decline in coal prices and grid tariffs.
Pakistan Floods: Historical Impact – By CHASE Research

Aug 28 2025



  • Pakistan is currently at the cusp of widespread floods due to its eastern rivers overflowing as a result of monsoon rains and release of water from Indian dams. As such, we believe it is important to assess the impact of past floods to determine whether equity markets will be impacted.
  • In this report, we look over the KSE100 index performance and impact on different sectors during flooding years to determine whether these floods will impact broader market sentiment and growth in fertilizer and cement demand.
Archroma Pakistan Limited (ARPL): 9MSY25 Corporate Briefing Takeaways – By Taurus Research

Aug 28 2025


Taurus Securities


  • Archroma Pakistan Limited is primarily engaged in the manufacture, import, and sale of dyes and other specialty chemical solutions. It is a subsidiary of the Switzerland-based company, Archroma Textiles GmbH. ARPL has two business divisions: textile effects and packaging technologies with a combined portfolio of between 300-400 products. APRL’s products are used in the pre-treatment, dyeing, printing, and finishing of textiles, and coloration and coatings of packaging materials. The Company’s products help enhance both the optical as well as the functional properties of its clients’ end products.
  • The textile effects division has four markets with several segments within each. These are: apparel (denim, casual wear, performance apparel, and formal war), home textiles (home and institutional, automotive), specialized textiles (technical textiles, protection textiles), and home care (personal care, plastics, and leather). This division serves customers from a wide range of industries such as textile, healthcare, cosmetics (anti-perspirant agents), construction (protective clothing), and producers of household care products such as detergents, dishwashing liquids, and other cleaning products.
Engro Holdings Limited (ENGROH): 1HCY25 Analyst Briefing Takeaways – By Foundation Research

Aug 29 2025


Foundation Securities


  • Engro Holdings Limited (ENGROH PA) held its Analyst Briefing to discuss the company’s financial/operational performance during 1HCY25 and prospects. The following are key takeaways of the session.
  • To recall, ENGROH’s PAT underwent a jump of 11.3x YoY in 2Q to PKR 69.3Bn due to thermal asset adjustments and re-measurements. However, excluding thermal asset adjustments, normalized PAT stood at only ~PKR 1.3Bn, reflecting the true underlying business performance. During 1HCY25, PAT reached PKR 73.3Bn versus PKR 13.8Bn in SPLY, recording a 5.3x YoY increase.
Engro Holdings Limited (ENGROH): 1HCY25 EPS clocked-in at PKR 29.5 (up 5.3x YoY) – By Foundation Research

Aug 28 2025


Foundation Securities


  • Engro Holdings Limited (ENGROH PA) reported a profit of PKR 69.3Bn (EPS: PKR 28.0) in 2QCY25 (up 11.3/17.1x YoY/QoQ) against profit of PKR 6.1Bn (EPS: PKR 4.0) in 2QCY24. This cumulates into profitability of PKR 73.3Bn (EPS: PKR 29.5), up 5.3x YoY, during 1HCY25.
  • ENGROH’s PAT underwent a jump of 11.3x YoY in 2Q to PKR 69.3Bn due to thermal asset adjustments and re-measurements. However, excluding thermal asset adjustments, normalized PAT stood at ~PKR 1.3Bn, reflecting the true underlying business performance. During 1HCY25, PAT reached PKR 73.3Bn versus PKR 13.8Bn in SPLY, recording a 5.3x YoY increase.
Cherat Cement Company Limited (CHCC): Earning Review – By Foundation Research

Aug 22 2025


Foundation Securities


  • Cherat Cement Company Limited (CHCC PA) profitability clocked-in at PKR 1.8Bn (EPS: PKR 9.5), up 2.16x/10% YoY/QoQ in 4QFY25, as compared to a profit of PKR 854Mn (EPS: PKR 4.4) in 4QFY24. This takes FY25 profitability to PKR 8.7Bn (EPS: PKR 44.7, up 58% YoY) as compared to a profit of PKR 5.5Bn (EPS: PKR 28.3) in the previous year. The result was accompanied by a final dividend of PKR 4.0/sh, taking full year payout to PKR 5.5/sh.
  • In 4Q, CHCC reported net sales revenue of PKR 9.7Bn, showing a jump of 2/25% YoY/QoQ, which is primarily due to 15% QoQ rise in domestic dispatches. In FY25, despite CHCC’s local sales going down by 10% YoY, the company sustained topline of PKR 37.8Bn with a dip of merely 2% YoY, mainly due to better retention prices.
  • We have an ‘Outperform’ stance on CHCC with a Dec’25 TP of PKR 477/sh offering an upside of 46%, wherein we expect profitability of the company to sustain on the back of rise in local demand and stable coal and energy prices.
Large Scale Manufacturing: Industrial activities remained sluggish in FY25 – By Foundation Research

Aug 18 2025


Foundation Securities


  • LSM output declined by 0.7% YoY during FY25 given second round effects of tight monetary stance and weak domestic demand. Whereas during Jun’25, LSM output recorded its third consecutive monthly increase of 4.1% YoY amid improving macroeconomic environment. Prominent sectors that fell during FY25 were Furniture (↓56.3%), Machinery and Equipment (↓35.5%), Other Manufacturing (Football) (↓16.0%), Fabricated Metal (↓13.9%), Electrical Equipment (↓11.7%), Chemicals Products (↓11.6%), Iron & Steel Products (↓8.7%), Non Metallic Mineral Products (↓7.9%), Chemicals (↓3.5%), Food (↓1.8%) and Rubber Products (↓1.3%). On the other hand, positive contributors were Automobiles (↑46.2%), Other transport Equipment (↑36.6%), Tobacco (↑7.0%), Wearing Apparel (↑5.7%), Coke & Petroleum Products (↑5.3%), Pharmaceuticals (↑2.7%), Computer, electronics & Op prods (↑2.6%), Textile (↑2.5%), Beverages (↑1.3%), Wood Products (↑1.3%), Leather Products (↑0.9%) and Paper & Board (↑0.4%).
  • Food production declined by 1.8% YoY as sugar, bakery, & chocolate production declined 14.3% YoY during FY25. Chemicals output reduced 3.5% YoY given chemical products weakened 11.6% YoY as toilet soaps/caustic soda/soaps & detergents/paints & varnishes (L)/sulphuric acid dropped 2.8/9.0/24.4/15.4/22.7% YoY during the year. Meanwhile, Fertilizer production accelerated by 1.7% YoY as Nit fertilizer rose 1.8% YoY while Phos fertilizer uplifted 1.0% YoY.
Lucky Cement Limited (LUCK): Earning Review – By Foundation Research

Aug 11 2025


Foundation Securities


  • Lucky Cement Limited’s (LUCK PA) consolidated profitability clocked-in at PKR 19.6Bn (EPS: PKR 13.4, ↑ 34/9% YoY/QoQ) in 4QFY25, compared to a profit of PKR 14.6Bn (EPS PKR 10.0) in 4QFY24. This brings FY25 profitability to PKR 77.0Bn (EPS: PKR 52.5, ↑ 17% YoY) against profit of PKR 65.6Bn in FY24 (EPS: PKR 44.8). LUCK announced a final dividend of PKR 4.0/sh in FY25 vs. PKR 3.0/sh in FY24.
  • Standalone earnings were recorded at PKR 3.90/sh (↓ 40/58% YoY/QoQ) in 4QFY25. This resulted in FY25 earnings of PKR 22.6/sh, exhibiting an increase 18% YoY.
Maple Leaf Cement Factory Limited (MLCF): FY25 EPS clocked-in at PKR 16.3, up 3.2x YoY – By Foundation Research

Aug 7 2025


Foundation Securities


  • Maple Leaf Cement Factory Limited (MLCF PA) profitability clocked-in at PKR 17.0Bn (EPS PKR 16.3), up 3.2x YoY in FY25, as compared to profit of PKR 5.3Bn (EPS PKR 5.0) in FY24. As for 4Q, bottom line expanded by 5.0x YoY to PKR 4.9Bn (EPS: PKR 4.7) in 4QFY25 as against profit of PKR 975Mn (EPS: PKR 0.9) in SPLY. The company did not announce a final dividend.
  • Revenue of the company arrived at PKR 17.6Bn (up by 12/6% YoY/QoQ) in 4Q which is above our estimates on the back of higher retention prices. On the other hand, COGS were reported at PKR 10.8Bn (↑/↓ 7/5% YoY/QoQ), in line with our estimates. Gross margins settled at 38% in 4QFY25, healthier than our expectations of 37%. As for FY25, surge in topline was limited at 4% YoY, while GM’s improved marginally to 34% from 32%.
  • We have an ‘Outperform’ stance on MLCF with Dec’25 TP of PKR 140/sh, wherein we expect profitability of the company to improve on the back of (1) Higher mix of coal in energy mix, (2) inclusion of alternative fuels, (3) recovery in local demand, and (4) stable energy prices.
MCB Bank Limited (MCB): 2QCY25 EPS is recorded at PKR 12.3, DPS PKR 9.0 – By Foundation Research

Aug 6 2025


Foundation Securities


  • MCB Bank announced its 2QCY25 results today reporting earnings of PKR 14.6Bn (EPS: PKR 12.3), ↓13.2/0.5% YoY/QoQ. This takes 1HCY25 profitability to PKR 24.7/sh (down 16% YoY). The result is in line with our expectations. The bank also announced an interim dividend of PKR 9.0/sh taking 1H payout to PKR 18.0/sh.
  • Net Interest Income (NII) of the bank declined by 3% YoY to PKR 39.9Bn in 2Q. As for 1H, NII underwent a decline of 5.6% YoY. Policy rate has reduced to 11% in Jun’25 from 20.5% a year ago, however, the bank’s robust CA ratio, robust investment income stream and sharp decline in deposit costs have limited the impact on the topline.
  • Non-funded income of the bank was reported at PKR 9.4Bn in the outgoing quarter, a decline of 4.3% YoY mainly on account of mild 5/8% YoY decline in fee and forex income respectively. As for capital gains, the bank only realized PKR 16Mn against PKR 75Mn in the SPLY. As for 1H, NFI has increased to PKR 19.9Bn, up 2.3% YoY.
Engro Fertilizers Limited (EFERT): 1HCY25 Analyst Briefing Takeaways – By Foundation Research

Aug 4 2025


Foundation Securities


  • Engro Fertilizer Limited (EFERT PA) held its Analyst Briefing today to discuss the company’s financial/operational performance during 1HCY25 and prospects. The following are key takeaways of the session.
  • To recall, Engro Fertilizer Limited’s (EFERT PA) profitability was recorded at PKR 5.6Bn (↑ 3.3x YoY) in 2QCY25. Topline reached PKR 50.4Bn (up 28% YoY). The company announced an interim cash dividend of PKR 4.25/sh, taking 1H payout to PKR 6.5/sh.
Pakistan Economy: 100bps cut expected in policy rate - By Foundation Research

Jul 28 2025


Foundation Securities



  • Despite halving of policy rate (↓1100bps) to 11.0% in the last 14 months, real interest rates on current, 1-yr forward and core measures are still overly positive (8/7/3%), a reflection of the substantial decline in inflation to 4.5% YoY in FY25 compared to 23.4% YoY in FY24. With Pakistan firmly entrenched on the path of sustained economic stability amid strong macroeconomic performance of last year given 7-yr low inflation, highest current account surplus in over 2 decades, FX reserves build-up of US$5.1 Bn, 8-yr low fiscal deficit, negative output gap and successful continuation of IMF program, we believe the Central Bank will continue reducing the policy rate taking it to 10.0% (↓100bps) at the Monetary Policy meeting scheduled on 30th Jul’25. At this level, the monetary policy stance would still be significantly tight (as required by IMF). The primary downside risks to our interest rate and inflation projection emanate from (1) exchange rate volatility, (2) geopolitical conflicts impacting energy prices and (3) US trade tariffs.
  • At the last MPS in Jun’25, the Central bank surprisingly paused, driven by (1) potential risks to external account amidst the sustained widening in the trade deficit and weak financial inflows, (2) possible impact of FY26 budgetary measures which might further widen the trade deficit by increasing imports and (3) Iran conflict. Given that these risks have not fully materialized, we feel that the Central bank will restart the easing cycle at the MPS next week.
Pakistan Automobile: Ending FY25 on a high - By Foundation Research

Jul 23 2025


Foundation Securities


  • The FSL Auto universe is forecasted to record a profitability of PKR 13.0Bn in 4QFY25 reflecting a robust growth of 33% YoY, driven by solid 60.1% YoY surge in auto sales, softening interest rates, and attractive auto financing schemes. Similarly, in FY25, net profit of our auto coverage is projected to rise 77% YoY to PKR 44.9Bn. Player-wise, INDU/HCAR/SAZEW are expected to report earnings of PKR 97.3/6.5/72.6 per share, respectively in 4QFY25. Result announcements are expected to be accompanied by final dividends of PKR 58.0/11.0 in INDU/SAZEW, respectively.
  • Earnings expected to stage a robust recovery: FSL Auto Universe is expected to post a profit of PKR 13.0Bn (↑/↓ 33.3%/10.6% YoY/QoQ) in 4QFY25. The YoY growth is primarily attributed to volumetric sales growth (↑60.1% YoY) in 4QFY25 and improving economic activity, while the QoQ decline stems from a contraction in margins, largely due to PKR depreciation (↓0.9/3.5/6.5% QoQ against USD/THB/JPY respectively). We estimate FY25 profitability to increase 77% YoY to PKR 44.9Bn and sector gross margins to surge to 17.5% in FY25 from 14.7% in the previous year.
  • INDU: INDU’s profitability is expected to grow 34.9/15.9% YoY/QoQ to PKR 97.3/sh in 4QFY25. This would pull FY25 earnings to PKR 307.9/sh (↑60.6% YoY). Growth in 4QFY25 earnings is attributed to volumetric surge of 66.6/29.7% YoY/QoQ with sizeable portion coming from Toyota Yaris facelift which was well received in the entry level sedan segment. We forecast GM’s of 14.1% in 4QFY25, (↓10/280bps YoY/QoQ). The margin compression is assumed on the back of PKR depreciation, which exerted pressure on cost structures despite solid top-line growth. We have forecasted a final dividend of PKR 58.0/sh (FY25E payout: PKR 184.0/sh).
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