⚡ Flash Summary

Gadoon Textile Mills Limited (GTML) held a corporate briefing session for FY24-25. The company highlighted its business segments including spinning, knitted bedding products, dyeing services, dairy, and strategic investments. GTML received the 2nd position for its Annual Report 2023 in the “Textile” Sector and the 18th Annual Occupational Safety & Health Recognition Award. It installed a 17.94 MW solar plant and has a further 26.24 MW plant in process.

📌 Key Takeaways

• 🏭 GTML was incorporated in Pakistan on February 23, 1988.
• 🧵 Principal activity: manufacturing & sale of yarn, knitted bedding products, dyeing services, and sale of milk.
• 📍 Operates manufacturing plants in Karachi (Sindh) and Gadoon Amazai (Khyber Pakhtunkhwa).
• 🏆 Awarded 2nd Position for Annual Report 2023 in the “Textile” Sector.
• 🏅 Received the 18th Annual Occupational Safety & Health Recognition Award.
• ☀️ Installed 17.94 MW solar plant; 26.24 MW further in process.
• Revenue decreased from Rs 72,724 million in June 2024 to Rs 70,980 million in June 2025.
• Gross Profit increased from Rs 5,017.44 million in June 2024 to Rs 6,326.054 million in June 2025.
• 📈 Profit after levies and taxes increased significantly from Rs 794.548 million in June 2024 to Rs 2,391.904 million in June 2025.
• ⚡️ EBITDA increased from Rs 7,517.163 million to Rs 8,619.417 million.
• 💸 Earnings per Share (EPS) increased from Rs 28.35 in June 2024 to Rs 85.33 in June 2025.
• ⚖️ Leverage Ratio (D/E) increased from 1.16 times to 1.30 times.
• 🌱 Emphasizing ESG initiatives and sustainable practices.

🎯 Investment Thesis

Given the mixed performance (revenue decrease but profit increase) and increased leverage, a HOLD recommendation is appropriate. The company shows improved profitability and commitment to sustainability, but needs to address revenue decline and manage debt effectively. Further analysis is needed to assess long-term growth potential. Price target: based on the assumption of a potential EPS growth rate and sector P/E metrics, a revised price target could be established.