⚡ Flash Summary

AKD Hospitality Ltd. reported its financial results for the year ended June 30, 2025. The company declared no final dividend for the year. Revenue remained flat at PKR 6,000,000 compared to the previous year. Profit after tax and levy decreased significantly from PKR 8,360,910 in 2024 to PKR 1,266,304 in 2025.

📌 Key Takeaways

• ❌ No dividend declared for the year ended June 30, 2025.
• 📊 Revenue stagnated at PKR 6,000,000, same as last year.
• 📉 Profit after tax and levy plummeted to PKR 1,266,304 from PKR 8,360,910.
• ⚠️ Earnings per share (EPS) dropped drastically to PKR 0.51 from PKR 3.33.
• 💰 Cash and bank balances increased slightly to PKR 14,118,089 from PKR 14,024,199.
• 📉 Reserves decreased from PKR (14,734,180) to PKR (1,003,876).
• 📉 Total Equity increased to PKR 37,018,858 from PKR 23,288,554.
• ⬆️ Current assets increased to PKR 16,954,313 from PKR 16,492,198.
• ⬆️ Non-current assets increased significantly to PKR 28,085,065 from PKR 15,635,539.
• ⬆️ Total Assets increased to PKR 45,039,378 from PKR 32,127,737.
• ⬆️ Other comprehensive income increased significantly to PKR 12,464,000 from PKR 3,838,000.
• ❌ No bonus shares or right shares were declared.
• 📅 Annual General Meeting scheduled for October 28, 2025.

🎯 Investment Thesis

Given the stagnant revenue, drastically reduced profitability, negative reserves, and poor EPS, a SELL recommendation is warranted. The company’s financial health is concerning, and the lack of dividend payout further reduces its attractiveness to investors. Unless there are significant improvements in operational efficiency and revenue growth, the stock is likely to underperform.