IMS has reported earnings per share of PKR 0.16 in 1QFY26 (1QFY25: PKR 0.10). IMS merged with EFG Hermes Pakistan Limited during FY24 through a typical reverse merger transaction. This merger made IMS one of the leading brokerage houses in executing foreign institutional business in Pakistan.
As a result of the merger, IMS’s market share increased to 7.8% from approximately 5% to 6%. IMS aims to increase its market share further from the current 7.8% (up from 6%) to at least 9.5% (with a potential target of 10%). IMS is shifting focus to tap the potential of the retail market.
Due to limited institutional allocation and recognizing the major activity from retail investors in the last financial year, IMS will focus on increasing its retail client base, including high net worth individuals. The strategy involves hiring good quality human resource to attract retail investors and stepping up marketing efforts.
IMS is discussing social media marketing with a marketing company. IMS, recognizing the volatility of the brokerage business, intends to invest in growth companies and ventures, although investment is not its core business. One of the ventures is Interpay a fintech company, a Point-of Sale (POS) service provider and a payment processing company. Interpay services will utilize AI agents for customers/businesses to help reduce their costs.
The target market includes Pakistan and the US. Pakistan’s market size is estimated at PKR 2.2 trillion per annum. Interpay is targeting 15% market share in 2-3 years. Targeting launch in both markets by December this year to February 2026 in the US. Second venture is AFT Japan, a Japan based car exporting company started 1.5 years ago. IMS intends to invest PKR 150 million. AFT Japan has acquired all necessary licenses and bank accounts in Japan in a very short span of time. Current export markets include Europe, Africa, and the UK. The announced opening of a commercial airport in Pakistan could make exporting cars to Pakistan very beneficial due to high margins compared to other regions.
Going forward, the management believes that PSX market volumes might pick up but not significantly. The market is expected to enter a consolidated phase, requiring focus on stock-specific opportunities.
At the current run-rate, management is expecting a profit of PKR 950 million at the year-end. Pay-out ratio will be decided later. A part from focusing on retail investors and HNWIs, the management also strategizes to strengthen Investment Banking.
Important Disclosures
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