⚡ Flash Summary

Atlas Battery Limited’s corporate briefing session for the year ended June 30, 2025, reveals a challenging period. The company experienced a significant decline in profitability, with profit after tax plummeting by 93.2% to PKR 91 million. This was primarily driven by a 15.1% decrease in sales revenue and a 33.3% decrease in gross profit. While the company has launched new battery products and is focusing on international markets, it faces significant headwinds.

📌 Key Takeaways

• 📉 Sales declined by 15.1% to PKR 35,201 million in 2025.
• 📉 Gross profit decreased by 33.3% to PKR 3,961 million.
• 📉 Profit after tax plummeted by 93.2% to PKR 91 million.
• 📉 EPS significantly dropped to Rs.2.60 from Rs.38.37.
• ⬆️ Distribution costs increased by 6.5% to PKR 1,495 million.
• ⬆️ Long-term borrowings significantly increased by 80.8% to PKR 1,669 million.
• ⬇️ Short-term borrowings decreased significantly by 51.0% to PKR 4,489 million.
• ✔️ The company has launched new DC batteries for stationary applications (UPS/Solar).
• ✔️ The company has launched Sealed Maintenance Free Batteries for vehicles
• ✔️ The company launched Tubular batteries Application: UPS / Solar Systems
• ✔️ The company is focused on proactive development and launching of new technology products.
• ✔️ The company intends to increase reach in international markets by focusing on 4Ps.
• ✔️ The company Enhance retailers’ engagement to increase market share using brand image.

🎯 Investment Thesis

Given the significant decline in financial performance, I recommend a SELL on Atlas Battery Limited. The sharp drop in profitability, declining sales, and challenging market conditions suggest limited upside potential in the short to medium term. The company needs to demonstrate a clear turnaround strategy and improved financial performance before an investment can be considered. Price target dependent on sector relative market evaluation after earnings stabilization.