⚡ Flash Summary

Habib Rice Products Ltd. (HRPL) held a corporate briefing session on October 25, 2025, to discuss the company’s current financial performance and outlook. The company is progressing with its Biomass Cogen Power and Steam Plant project to mitigate frequent power failures, with civil work expected to be completed by the end of November 2025. HRPL is also in the process of liquidating its 100% owned subsidiary, Habib Rice Products FZE in Sharjah, UAE, to avoid fixed recurring costs due to prolonged visa restrictions. Financial results presented show a net loss of (155.712) million rupees, and a decrease in sales.

📌 Key Takeaways

• 1. 🗓️ Corporate briefing session held on October 25, 2025.
• 2. 🏭 Progressing with Biomass Cogen Power and Steam Plant project.
• 3. 🚧 Civil work for the Cogen Power Plant budgeted for completion by end of November 2025.
• 4. 🌍 Liquidating 100% owned subsidiary Habib Rice Products FZE in Sharjah, UAE.
• 5. 💸 Liquidation aimed at avoiding fixed recurring costs due to visa restrictions.
• 6. 📉 Net Sales decreased from 2,340 million to 2,136 million rupees (year-over-year).
• 7. 📉 Net loss of (155.712) million rupees, increased loss from (92.434) million in the prior year.
• 8. 📉 Earnings per share (EPS) decreased to (3.89) from (2.31).
• 9. 🚫 No dividend was announced.
• 10. 🏢 Registered office is located at 2nd Floor, UBL Building, I.I Chundrigar Road, Karachi.
• 11. 🧑‍💼 Senior management discussed the company’s financial performance and outlook.
• 12. 🌾 HRPL produces organic and non-GM conventional rice-based sweeteners, polyols, and protein concentrates.
• 13. 📅 Financial results are for the year ended June 30, 2025.
• 14. 💼 Auditors are Grant Thornton Anjum Rahman, Chartered Accountants.
• 15. 🏛️ The briefing was held at The Institute of Chartered Accountants of Pakistan (ICAP), Karachi.

🎯 Investment Thesis

Given the company’s recent financial performance, characterized by declining sales, increased losses, and negative earnings per share, a SELL recommendation is appropriate. There is not enough information to determine a likely price target. These negative indicators raise concerns about the company’s short term outlook, as well as the long term viability of its existing strategy.