⚡ Flash Summary

AMTEX Limited’s annual report for the year ended June 30, 2025, reveals a challenging financial year. The company experienced a decrease in sales, resulting in a net loss after tax of Rupees 130.150 million compared to a net profit of Rupees 179.028 million in the previous year. The auditors have expressed concerns about the company’s ability to continue as a going concern due to accumulated losses and liquidity issues. However, management is making efforts to restructure loans and improve operations, with signs of potential recovery in textile exports.

📌 Key Takeaways

• 🚨 AMTEX Limited reported a net loss after tax of Rupees 130.150 million for FY25, a significant decline from the previous year’s net profit of Rupees 179.028 million.
• 📉 Sales decreased to Rupees 2,370.790 million in FY25 from Rupees 2,793.103 million in FY24.
• ⚠️ Auditors raised concerns about the company’s ability to continue as a going concern due to accumulated losses and liquidity issues.
• 🏭 The company’s gross profit decreased significantly from Rupees 421.932 million in FY24 to Rupees 133.009 million in FY25.
• 🙁 Profit/Loss before Levy & taxation went from a profit of 209.68 Million to a loss of (94.626) Million.
• 💸 The company is involved in litigation with Sukuk unit holders and certain financial institutions, impacting its financial stability.
• 🏦 Certain banks did not confirm short & long-term loan balances, creating uncertainty in the financial statements.
• ✔️ Pakistan’s textile exports are showing signs of recovery, attributed to a favorable global trade outlook.
• 🌍 The company is focusing on non-traditional markets due to economic headwinds in traditional destinations.
• 🚧 Management is actively pursuing debt restructuring and operational improvements.
• 🧵 The company stopped the operations of the processing division in previous years.
• 📜 The auditors have issued an adverse opinion on the financial statements.
• ⚖️ There were significant litigation with Sui Northern Gas Pipelines Limited that could negatively impact the financials.

🎯 Investment Thesis

Given the combination of substantial net losses, negative cash flow, auditor concerns and economic/legal uncertainties, a SELL recommendation is appropriate. AMTEX faces a challenging path forward. It’s unlikely for the company to significantly turn around in the current conditions. This recommendation is based on a need to reduce risk and protect capital. No particular price target is provided given current financial position, with a time horizon of short to medium term.