⚡ Flash Summary

Sunrays Textile Mills Ltd. reported its financial results for the year ended June 30, 2025. The company’s revenue decreased slightly compared to the previous year. No dividends, bonus shares, or right shares were recommended by the board. The Annual General Meeting is scheduled for October 28, 2025. The share transfer books will be closed from October 22, 2025, to October 28, 2025.

📌 Key Takeaways

• ❌ No cash dividend was recommended for the year ended June 30, 2025.
• 📉 Revenue from contracts with customers decreased to PKR 19,257.16 million in 2025 from PKR 20,148.89 million in 2024.
• 🙁 Gross profit decreased to PKR 1,503.12 million in 2025 from PKR 1,604.63 million in 2024.
• 💸 Finance costs increased to PKR 1,060.77 million in 2025 from PKR 1,023.05 million in 2024.
• 📉 Profit before income tax decreased to PKR 158.89 million in 2025 from PKR 229.38 million in 2024.
• 📉 Profit for the year decreased to PKR 76.62 million in 2025 from PKR 177.19 million in 2024.
• 📉 Earnings per share decreased to PKR 3.70 in 2025 from PKR 8.56 in 2024.
• ⚠️ Trade debts increased significantly from 3,068.46 million to 4,441.88 million.
• ✅ The company’s Annual General Meeting will be held on October 28, 2025.
• ⛔️ No bonus or right shares were declared.
• 🏦 Cash and bank balances decreased from PKR 83.99 million to PKR 78.75 million.

🎯 Investment Thesis

HOLD. Given the decreased revenue, profits, and earnings per share, as well as the lack of dividends and increased trade debts, a HOLD recommendation is appropriate. Monitor the company’s ability to improve its operational efficiency and manage its receivables. A clear strategy for addressing these challenges is needed before considering a more positive stance.