⚡ Flash Summary

Haji Mohammad Ismail Mills Limited reported no sales or manufacturing activity for the first quarter ended September 30, 2025, mirroring the same period last year. The company incurred a pre-tax loss of Rs. 1,284,433 and a loss per share of Rs. (0.11). Management acknowledges the adverse market factors impacting the company’s financial position and is currently defending a winding-up petition filed by the SECP in the High Court of Sindh. They are seeking opportunities for corporate restructuring or merger.

📌 Key Takeaways

• ❌ No sales or manufacturing activity reported for Q1 2025.
• 📉 Pre-tax loss of Rs. 1,284,433.
• 📉 Loss per share of Rs. (0.11).
• ⚠️ Adverse market conditions continue to negatively impact the company.
• 🏛️ Winding-up petition filed by SECP is still sub judice; management is defending the case.
• 💼 Management seeking corporate restructuring or merger opportunities.
• 👍 Political stability and reduced markup rates cited as potential improvements.
• 🚧 Electricity, gas, and petroleum prices remain hurdles to economic growth.
• 💰 Investments available for sale increased significantly from Rs. 332,325 to Rs. 2,395,050 since June 30, 2025.
• 💸 Cash and bank balances decreased from Rs. 3,540,846 to Rs. 2,487,228 since June 30, 2025.
• ⚖️ Contingency exists related to a notice from the National Bank of Pakistan regarding a loan written off in 2003; case is still pending resolution.
• ✅ The company has taken steps to comply with corporate governance regulations.

🎯 Investment Thesis

Given the company’s current state, a SELL recommendation is warranted. The lack of revenue, continued losses, legal challenges, and reliance on uncertain future events make this a high-risk investment with a low probability of success. Investors should seek opportunities elsewhere until there is concrete evidence of a successful turnaround.