⚡ Flash Summary

Kohinoor Spinning Mills Limited reported a net loss of Rs. 35.49 million for the quarter ended September 30, 2025, which is slightly better than the net loss of Rs. 37.03 million for the same period last year. The Directors have injected Rs. 81 million into the Company to sustain operations. The company faces challenges including a shortage of quality raw cotton, high energy costs, and high interest rates. The directors express concern about the immediate revival of the spinning industry in Pakistan.

📌 Key Takeaways

• ⚠️ Net loss of Rs. 35.49 million for the quarter ended September 30, 2025.
• 📉 Slight improvement compared to a net loss of Rs. 37.03 million in the corresponding period last year.
• 💰 Directors injected Rs. 81 million to keep the Company afloat.
• 🧵 Severe shortage of quality raw cotton affecting operations.
• ⚡️ Soaring energy costs making production prohibitively expensive.
• 📈 High interest rates hindering access to working capital and technological upgrades.
• 🌍 Shrinking international market due to global recessionary trends and competition.
• 📉 Drastic drop in orders reported.
• 😕 Directors are not hopeful about the revival of the spinning industry in the country.
• 🏭 Company has leased out its production facilities to earn cash surplus, contract is for one year and renewable.
• ⚠️ Current liabilities exceed current assets by Rs. 2,353.92 million.

🎯 Investment Thesis

Given the continued losses, reliance on director’s loans, and challenging industry conditions, a SELL recommendation is appropriate. The company’s financial stress and operational difficulties make it a high-risk investment. The fact that the company is leasing out its production facilities shows the dire situation. A price target cannot be determined in the absence of a current stock price.