⚡ Flash Summary

Chakwal Spinning Mills Limited reported a net loss of PKR 28.147 million for the quarter ended September 30, 2025, compared to a loss of PKR 29.061 million in the same period last year. The company experienced a decrease in gross loss from PKR 27.972 million to PKR 25.527 million. Operating loss slightly decreased from PKR 29.821 million to PKR 28.147 million. The company’s loss per share slightly improved from (0.24) to (0.23).

📌 Key Takeaways

• 📉 Net loss for the quarter improved slightly to PKR (28.147) million from PKR (29.061) million YoY.
• 📉 Gross loss decreased to PKR (25.527) million compared to PKR (27.972) million YoY.
• ⚠️ Operating loss improved slightly to PKR (28.147) million from PKR (29.821) million YoY.
• 📝 Administrative expenses increased to PKR (2.620) million from PKR (1.849) million YoY.
• ❌ Loss per share improved slightly to (0.23) from (0.24) YoY.
• ✔️ Total assets decreased to PKR 1,986.696 million from PKR 2,012.271 million since June 30, 2025.
• ✔️ Non-current assets decreased to PKR 1,958.451 million from PKR 1,984.026 million since June 30, 2025.
• ✔️ Cash and bank balances decreased slightly to PKR 28.245 million from PKR 28.245 million since June 30, 2025.
• ✔️ Issued, subscribed and paid-up share capital remains unchanged at PKR 607.881 million.
• ✔️ Accumulated loss increased to PKR (1,105.975) million from PKR (1,094.487) million since June 30, 2025.
• ✔️ Surplus on revaluation of property decreased to PKR 1,577.954 million from PKR 1,594.612 million since June 30, 2025.
• ✔️ Short-term borrowings increased to PKR 391.505 million from PKR 386.984 million since June 30, 2025.

🎯 Investment Thesis

HOLD. While there are some minor improvements in loss reduction, the company is still loss-making. It is not advisable to BUY until consistent profitability is shown. A SELL recommendation is not warranted, given minor improvements. Thus, a HOLD recommendation is warranted.