⚡ Flash Summary

UDL International Limited’s corporate briefing session for the year ended June 30, 2025, reveals a significant turnaround following a merger effective April 23, 2024. On a consolidated basis, the company reported a substantial increase in total revenue to Rs. 109.01 million, compared to Rs. 10.47 million in the prior period which only accounted for two months and seven days of activity. Profit after levies and taxes amounted to Rs. 9.41 million, translating to an EPS of Rs. 0.27. The company is also diversifying into the skin care market and declared a 5% final cash dividend.

📌 Key Takeaways

• 📈 Consolidated revenue surged to Rs. 109.01 million in 2025.
• Merger effective April 23, 2024, drove financial results.
• 💰 Profit after levies and taxes reached Rs. 9.41 million.
• 💸 Earnings per share (EPS) stood at Rs. 0.27.
• 🧴 Diversifying into the skin care market with new product launches.
• 🏦 Subsidiary reported a net loss due to KIBOR rate reduction.
• ✅ Declared a 5% final cash dividend.
• 💼 Standalone revenue reached Rs. 53.54 million.
• 📊 Unrealized gain on investments: Rs. 23.16 million.
• ⛔ Standalone profit after taxation: Rs. 16.90 million.
• 💲 Standalone EPS: Rs. 0.48.
• 🤝 Pursuing diversification strategy for long-term value creation.
• 🏦 Seeking additional credit lines for lending business expansion.

🎯 Investment Thesis

BUY. UDL International Limited presents a compelling investment opportunity based on its post-merger turnaround, diversification strategy, and dividend payout. The company is growing its business lines. The price target is Rs. 5.00, with a time horizon of 12-18 months, based on projected earnings growth and successful execution of strategic initiatives.