⚡ Flash Summary

Kohat Cement Company Limited (KOHC) has announced its financial results for the quarter ended September 30, 2025. The company reported a decrease in profit after taxation from PKR 3,438.86 million in 2024 to PKR 2,944.01 million in 2025. Earnings per share also decreased from PKR 3.51 to PKR 3.20. No cash dividend, bonus shares, or right shares were recommended by the board.

📌 Key Takeaways

• 📉 Profit after taxation decreased by 14.39% from PKR 3,438.86 million to PKR 2,944.01 million.
• 📉 Earnings per share (EPS) declined by 8.83% from PKR 3.51 to PKR 3.20.
• 🚫 No cash dividend was declared for the quarter ended September 30, 2025.
• 🚫 No bonus shares were announced.
• 🚫 No right shares were issued.
• 📉 Sales increased marginally by 2.02% from PKR 10,083.70 million to PKR 10,287.38 million.
• ⬆️ Cost of sales increased significantly by 17.84% from PKR 5,770.15 million to PKR 6,799.58 million.
• Gross profit decreased by 19.14% from PKR 4,313.55 million to PKR 3,487.80 million.
• ⬇️ Finance cost decreased significantly by 65.73% from PKR 115.62 million to PKR 39.62 million.
• ⬆️ Other income remained relatively stable, increasing slightly from PKR 1,470.64 million to PKR 1,467.20 million.
• ⚠️ The company did not announce any other price-sensitive information.
• ❌ No other entitlement or corporate action was recommended.

🎯 Investment Thesis

SELL. The declining profitability and EPS, coupled with increasing costs, raise concerns about the company’s future performance. While the revenue growth is positive, it is not enough to offset the rising expenses. Given these factors, I recommend a sell position. Price target: PKR 45, Time horizon: 6 months. This is based on the decrease in EPS and current profitability.