PGOP: Spring profit rose 4.9-fold as capital doubled; Sahmino's buy call targets 2,101 rials (Wednesday, October 14, 2026)

Persian Gulf Investment Bank, traded as PGOP (Tefars) on Iran's Farabourse, earned 4,406,686 million rials of net profit in the three months to June 21, 2026, about 4.9 times its spring 2025 profit. At the same time its registered share capital doubled through a cash contribution. The question is whether a low earnings multiple survives the doubling of its share count.

Background

PGOP trades on Farabourse's Second Market in the financial auxiliaries industry. The figures below come from the company's unaudited standalone first-quarter accounts, Codal tracing number 1570679, and its audited 2025-26 annual accounts, number 1551936. Financial statements express amounts in millions of rials; 10,000 million rials equal one billion tomans.

The numbers

• Operating revenue for the quarter to June 21, 2026 was 7,890,392 million rials, versus 3,546,463 million for the comparable quarter to June 21, 2025, an increase of approximately 122%.
• Operating profit was 4,432,525 million rials, up from 903,196 million.
• Net profit was 4,406,686 million rials against 903,196 million. In the quarter to June 20, 2024, it had been 813,479 million, so the comparison is not merely against a one-off zero-profit quarter.
• Full-year net profit to March 20, 2026 was 6,375,435 million rials in the audited annual accounts; the following spring's profit is roughly 69% of that whole prior year, not a like-for-like annual growth rate.

The company's original spring 2025 filing, Codal number 1376666, also reports revenue of 3,546,463 million rials and net profit of 903,196 million for that quarter. Its figures agree with the restated comparison column of the spring 2026 accounts. Both filings originate with the same issuer, however, and should not be misrepresented as independent confirmation of its new quarter.

Is it still cheap after the new shares?

At the extraordinary meeting on August 23, 2026, shareholders approved a 100% increase in capital, from 15 trillion to 30 trillion rials, all 15 trillion rials financed through receivables and cash contributions (Codal number 1589406). The exchange now lists 30 billion PGOP shares. Trailing net profit to June 21, 2026 is 9,878,925 million rials: the audited year to March 20 plus spring 2026 minus spring 2025. Dividing by 30 billion shares gives roughly 329 rials per share. Against the settled October 13 closing price of 1,929 rials, the ratio is 5.86. If the same profit were divided by the old 15 billion shares, earnings per share would be 659 rials and P/E about 2.9. The reported 5.86 is therefore calculated after, not before, the doubling of the share count.

The exchange's industry P/E on October 14 was 10.43, though that industry reading and the stock's settled October 13 P/E are not struck at the same instant. In Sahmino's nightly screen of positive-earnings financial auxiliaries, 13 stocks qualified on October 14; PGOP ranked fifth cheapest by trailing P/E, behind the symbols KRDN at 3.56, TMLT at 4.44, TNOV at 4.93 and OMID at 4.98. This is a sector screen, not a claim that PGOP is the cheapest stock in Tehran. Its price had already risen around 108% over the three months through October 13.

Drivers and the counterargument

The spring profit improvement has an accounting mechanism: cost of sales increased from 2,182,341 million rials a year earlier to 2,802,950 million for the quarter to June 21, 2026, considerably slower than operating revenue. Gross profit consequently rose from 1,364,122 million to 5,087,442 million rials. Net margin for the quarter was approximately 56%, compared with roughly 25% in spring 2025. The June 21 balance sheet shows 27,663,467 million rials of short-term investments, roughly 81% of total assets, and no interest-bearing borrowings in the lines reviewed. That mix leaves earnings exposed to returns on investments rather than the sales of physical products.

The objection is real: the new 15 trillion rials of capital must produce returns to justify its cost, and a holder who did not exercise the cash-funded rights could suffer ownership dilution. The separate PGOP rights instrument was recorded at 784 rials at its last October 7 session and was halted when its exchange record was checked on October 14. Its old print is not a current executable offer. Retail investors net-sold approximately 27.2 million shares on October 12 and 37.4 million on October 13. The October 13 net retail selling value was 72.1 billion rials, or 7.2 billion tomans. This flow measures pressure, not intrinsic value.

Outlook

Sahmino's desk recorded a buy reading for PGOP at its October 13 session, with a 1,929-rial reference, a target near 2,101 rials, invalidation near 1,829 rials and a 15-session horizon. Forty-one of 55 settled calls in its comparable sample reached their targets; that historical count is not a guarantee for this trade. The desk's avoid readings on September 14, 16 and 19 had each reached their bearish targets; its stance has since changed. Across all settled desk calls, 586 of 1,108 reached their target and 475 were invalidated. PGOP's last trade on October 14 at around 13:27 Tehran time was 1,904 rials, approximately 9.4% below that target and 4.1% above the invalidation level. Keep the last trade separate from that day's running closing-price calculation and from the October 13 settled close used for valuation.

Follow the recorded target and stop on PGOP's Sahmino page, look at the rights instrument separately, and read the capital decision in the extraordinary meeting event. Our signal record explainer shows why a historical hit rate needs its sample size.

Conclusion

PGOP passes the valuation test at the October 13 settled close even with twice as many shares. PGOP reaches 2,101 rials within 15 sessions from October 13, provided no session closes below 1,829 rials; that is Sahmino's reading, and a close below 1,829 invalidates it.

What to watch

The next financial report needs to show whether PGOP retains its spring operating margin and whether fresh capital earns enough to sustain it. Last year the spring report appeared on July 21 and the six-month report on October 22, 2025, but this year's date has not been officially confirmed. On the board, compare the next session's settled close to the call's invalidation rather than presenting the October 13 P/E as a live multiple. Should the stock close below 1,829 rials, or reported profitability deteriorate while retail selling persists, the opportunity described by this call no longer stands.