⚡ Flash Summary

Gulistan Textile Mills reported a significant loss after taxation of PKR 51.67 million for the year ended June 30, 2025, a stark contrast to the profit of PKR 735.26 million in the previous year. This translates to a negative earnings per share (EPS) of PKR 2.72 compared to a positive EPS of PKR 38.73 in 2024. The company experienced a considerable loss from operations of PKR 56.68 million. While other income partially offset the losses, it wasn’t sufficient to achieve profitability. The company’s scheme of arrangement with creditors sanctioned by the Sindh High Court Karachi is under implementation.

📌 Key Takeaways

• 📉 Loss after taxation: PKR 51.67 million in 2025 vs. Profit of PKR 735.26 million in 2024.
• 📉 EPS: Negative PKR 2.72 in 2025 vs. Positive PKR 38.73 in 2024.
• ⚠️ Loss from operations: PKR 56.68 million in 2025 compared to PKR 16.39 million in 2024.
• ⬆️ Other income: Decreased significantly to PKR 5.03 million in 2025 from PKR 751.66 million in 2024.
• 💰 Finance Cost: Remained relatively stable at PKR 18,901 in 2025 compared to PKR 14,783 in 2024.
• ⚖️ (Loss)/Profit before Taxation: PKR (51,667,958) in 2025 vs. PKR 735,259,923 in 2024.
• 🚫 No Cash Dividend, Bonus Shares, or Right Shares were declared for the year.
• 🏛️ Scheme of Arrangement: Implementation ongoing, sanctioned by Sindh High Court Karachi.
• 📅 AGM: Annual General Meeting scheduled for October 28, 2025.
• 📚 Share Transfer Books: To remain closed from October 21, 2025, to October 28, 2025.
• 🏦 Payable to Banking Companies under scheme of arrangement: PKR 8,216,834,000 for both 2025 and 2024.
• Assets decreased slightly from PKR 448.74 million in 2024 to PKR 441.41 million in 2025.

🎯 Investment Thesis

SELL. Gulistan Textile Mills’ financial performance has deteriorated significantly, with a substantial loss reported for the year ended June 30, 2025. The negative EPS and cash flow from operations, coupled with large accumulated losses and ongoing financial restructuring, make it a risky investment. A price target cannot be reasonably established given the negative earnings. The time horizon is indefinite.