⚡ Flash Summary

Shahtaj Textile Limited’s corporate briefing reveals a challenging year. Net sales decreased by 16.8% to Rs 6.620 billion, which they attributed to focusing on sales orders against weaving charges. However, the company reported an after-tax profit of Rs 110.983 million, with EPS rising to Rs 11.49, compared to Rs 2.81 in the prior year, indicating improved profitability despite lower revenues. The company has also installed a 1 MW solar plant and is in the process of adding another 3.3 MW, showing a commitment to renewable energy and cost reduction.

📌 Key Takeaways

• 📉 Net sales decreased by 16.8% from Rs 7.953 billion to Rs 6.620 billion.
• ⬆️ After-tax profit increased to Rs 110.983 million.
• ⬆️ Earnings per share (EPS) increased significantly to Rs 11.49 from Rs 2.81.
• ☀️ Company installed a 1 MW solar plant.
• 🏭 Plans to add an additional 3.3 MW solar plant.
• ⬆️ Gross profit rate increased to 9.78% from 8.47%.
• 💰 Authorized Capital – 100,000,000.
• ✔️ Issued Paid-up Capital – 96,600,000 (Ordinary Shares of Rs. 10 each).
• ✔️ The entity ratings for the current year assigned on November 13, 2024 has been maintained at ‘A-/A-2′.
• ✔️ The governing board comprised of ten(10) members.
• ✔️ Director’s, CEO, Their Spouse and Minor Children SHARES HELD 3,673,940 PERCENTAGE % 38.03

🎯 Investment Thesis

Given the mixed performance, I recommend a HOLD rating on Shahtaj Textile Limited. The increased EPS and focus on renewable energy are encouraging, but the revenue decrease needs to be closely monitored. I would need to better understand what sales orders against weaving charges is. Current market value of 89.33, I think it can get to 100 but it would be a long time to get there. Given risk factor, would need it as HOLD.