⚡ Flash Summary

Mahmood Textile Mills Limited reported financial results for the year ended June 30, 2025. The company experienced a decrease in sales, from PKR 66.58 billion in 2024 to PKR 57.07 billion in 2025. Net profit for the year increased significantly to PKR 978.07 million, compared to PKR 249.54 million in the prior year, likely due to decreased finance costs and other operating expenses. The Board of Directors did not recommend any cash dividend, bonus issue, or right shares.

📌 Key Takeaways

• 📉 Sales decreased by 14.29% from PKR 66.58 billion in 2024 to PKR 57.07 billion in 2025.
• ⬆️ Gross profit decreased by 18.14% from PKR 9.73 billion to PKR 7.96 billion.
• ⬇️ Operating profit decreased by 23.65% from PKR 6.85 billion to PKR 5.23 billion.
• ⬇️ Finance costs decreased by 26.99% from PKR 5.63 billion to PKR 4.11 billion.
• ⬆️ Other income increased significantly by 193.45% from PKR 117.49 million to PKR 344.65 million.
• ⬇️ Share of net profit of associate decreased by 42.69% from PKR 437.16 million to PKR 250.48 million.
• ⬆️ Profit before levy and taxation increased by 11.51% from PKR 1.37 billion to PKR 1.53 billion.
• ⬇️ Levy/final taxation decreased from PKR 895.79 million to PKR 713.39 million.
• ⬆️ Net profit for the year increased significantly by 291.95% from PKR 249.54 million to PKR 978.07 million.
• ⬆️ Earnings per share increased significantly from PKR 8.32 to PKR 32.60.
• 🚫 No cash dividend was recommended by the Board of Directors.
• ➡️ The Annual General Meeting will be held on October 28, 2025.
• 📖 The share transfer book will be closed from October 21, 2025, to October 28, 2025.
• ✨ Total assets increased from PKR 55.03 billion to PKR 57.35 billion.

🎯 Investment Thesis

HOLD. The significant increase in net profit and EPS is encouraging, but the decline in revenue raises concerns about long-term sustainability. Further investigation is needed to determine the reasons behind the revenue decrease and to assess the company’s competitive position in the market. A price target cannot be accurately determined without a deeper analysis of the company’s future growth prospects and risk profile. The time horizon for this recommendation is medium-term (6-12 months).