⚡ Flash Summary

Dadex Eternit Limited reported a loss for the first quarter ended September 30, 2025. Sales decreased compared to the same period last year, and the company experienced a gross loss. This resulted in a net loss, and a negative earnings per share. The company faces challenges in profitability amid declining revenues, requiring strategic adjustments.

📌 Key Takeaways

• 📉 Sales decreased to PKR 205.7 million, a 7.7% decrease from PKR 222.9 million in Q1 2024.
• 💔 Gross profit turned into a loss of PKR 14.8 million, compared to a profit of PKR 0.9 million in Q1 2024.
• 😫 Operating loss increased to PKR 47.6 million from PKR 53.1 million year-over-year.
• 💸 Finance costs decreased to PKR 22.5 million from PKR 36.9 million year-over-year.
• ⛔ Net loss widened to PKR 75.6 million from PKR 95.5 million year-over-year.
• 📉 Earnings per share (EPS) stood at negative PKR 7.03, compared to negative PKR 8.88 in Q1 2024.
• 💰 Cash generated from operations was PKR 29.0 million vs (PKR 14.2 million) in Q1 2024.
• 💸 Net cash from operating activities decreased to PKR 8.3 million from PKR 12.6 million year-over-year.
• 🚧 Capital expenditure amounted to PKR 4.6 million.
• 🏦 Cash and cash equivalents decreased to negative PKR 624.7 million.
• ⚠️ Trade debts increased to PKR 15.5 million vs PKR 10.4 million as of June 30, 2025.
• 库存 Stock in trade decreased to PKR 139.1 million from PKR 175.4 million as of June 30, 2025.
• Liabilities against assets subject to finance lease stayed consistent at PKR 1.5 million.
• 🚫 No cash dividend, bonus shares, or right shares were recommended.

🎯 Investment Thesis

SELL. The company’s declining revenue, gross losses, and continued net losses make it an unattractive investment at this time. A price target cannot be reasonably established due to the current negative financial performance. Time horizon: Near term (3-6 months) until significant restructuring or turnaround.