⚡ Flash Summary

Nazir Cotton Mills Limited reported financial results for the quarter ended September 30, 2025. The company experienced a net loss of PKR 2.28 million, a significant decrease compared to the net loss of PKR 5.48 million in the same quarter last year. There was no cash dividend, bonus shares, or right shares declared for the quarter. The company’s statement of financial position shows total equity and liabilities of PKR 288.91 million, slightly decreased from PKR 289.43 million as of June 30, 2024.

📌 Key Takeaways

• 📉 Net loss for the quarter ended September 30, 2025, was PKR 2.28 million.
• 📉 This is an improvement compared to a net loss of PKR 5.48 million for the same quarter last year.
• ⛔ No cash dividend was declared for the quarter ended September 30, 2025.
• ⛔ No bonus shares were declared for the quarter.
• ⛔ No right shares were declared for the quarter.
• 💰 Total equity and liabilities stood at PKR 288.91 million as of September 30, 2025.
• 🏦 Cash and bank balances decreased to PKR 624,354 from PKR 6,863,482 at the end of the last year.
• ⬆️ Other operating income increased to PKR 355,244 from PKR 148,673.
• ⬆️ Trade debts decreased to PKR 83,300 from PKR 79,730.
• ⬇️ Deposits, prepayments, and other receivables decreased to PKR 2,311,847 from PKR 3,157,513.
• ❌ No other entitlement/corporate action was recommended.
• ❌ No other price-sensitive information was disclosed.

🎯 Investment Thesis

Based on the current financial performance, a HOLD recommendation is appropriate. While the reduced loss is a positive signal, sustained profitability is yet to be achieved. A more optimistic outlook would require consistent positive cash flows and a clear path to profitability. Further, it would require that management can demonstrate the ability to continue to increase operating income while reducing cost. An updated recommendation should be considered in the following quarter. The price target can only be determined once there is a more detailed discounted cash flow.