⚡ Flash Summary

Paramount Spinning Mills Limited reported a challenging first quarter ended September 30, 2025, with a significant loss. The company’s sales were nil, resulting in a gross loss. Administrative expenses and finance costs further contributed to a substantial loss from operations and after taxation. There were no dividends, bonus shares, or right shares recommended by the board.

📌 Key Takeaways

• 📉 Sales were NIL for the quarter ended September 30, 2025, compared to an unquantified amount in 2024.
• ⚠️ The company reported a gross loss, indicating production costs exceeded sales.
• 🏢 Administrative expenses were (PKR 1,842,650), a significant increase from (PKR 295,361) in 2024.
• 💰 Other income was PKR 10,189, substantially lower than PKR 510,243 in 2024.
• 💔 The loss from operations was (PKR 1,832,461), compared to a profit of PKR 214,882 in 2024.
• 💸 Finance costs decreased slightly to (PKR 1,021) from (PKR 1,972) in 2024.
• ⛔️ The loss before taxation was (PKR 1,833,482), compared to a profit of PKR 212,910 in 2024.
• 📉 Loss after taxation was (PKR 1,833,482), compared to a profit of PKR 212,910 in the same quarter last year.
• 📉 Earnings per share (basic and diluted) were (PKR 0.11), a decrease from PKR 0.01 in 2024.
• 🚫 No cash dividend, bonus shares, or right shares were recommended.
• 🏦 Cash and bank balances decreased to PKR 4,508,360 from PKR 8,381,717 since June 30, 2025.
• 负 Accumulated losses increased to (PKR 1,375,512,682) from (PKR 1,373,679,200) since June 30, 2025.
• ⚠️ Total assets decreased to PKR 23,097,706 from PKR 26,009,026 since June 30, 2025.

🎯 Investment Thesis

Given the severe financial losses, lack of revenue, and increasing accumulated losses, a SELL recommendation is warranted. The company faces significant challenges in its operations and financial management. There is no clear indication of a turnaround strategy, and the current financial condition suggests a high probability of further deterioration. A price target cannot be reasonably established due to the lack of positive financial performance, the time horizon is short term.