⚡ Flash Summary

Bannu Woollen Mills Limited (BWM) held a corporate briefing session for the year ended June 30, 2025. The company reported sales revenue of Rs. 969 million, up from Rs. 891 million in the previous year. However, the company incurred a loss after tax of Rs. (98) million compared to a profit of Rs. 306 million in the prior year, resulting in a loss per share of Rs. (10.35). Management expects sales growth and improved profitability moving forward despite current macroeconomic challenges, recent floods, and rising costs.

📌 Key Takeaways

• Incorporated in 1960, shares are quoted on the Pakistan Stock Exchange.
• Company is engaged in manufacture and sale of woollen yarn, cloth and blankets. 🧶
• Fixed assets are reported at Rs. 1.550 Billion. 💰
• Staff strength is 501 employees. 👨‍💼👩‍💼
• GDP Growth increased to 2.68% from 2.4%. 🌱
• Inflation eased to 3.2% from 12.6%. 📉
• Policy rate cut to 11%. ✂️
• PKR remained stable at 284/US$. ₨
• Stock in trade increased by 22.08% to Rs. 995.10 million. 📈
• Trade debts decreased significantly by 70.89% to Rs. 36.71 million. 📉
• Sales tax refundable increased by 85.23% to Rs. 29.84 million. ⬆️
• Investments decreased by 9.63% to Rs. 1,039.23 million. 🔽
• Sales Revenue increased from Rs. 891 million to Rs. 969 million. ⬆️
• Company incurred a loss after tax of Rs. (98) million versus profit of Rs. 306 million. 💔
• Loss / Earnings per share is (Rs/Share) (10.35) compared to 32.21 previously. 📉

🎯 Investment Thesis

Given the current loss-making situation, increasing creditor days, and negative EPS, a HOLD recommendation is appropriate. While revenue increased, the significant drop in profitability raises concerns. Management’s expectation of sales growth needs to be supported by concrete actions to improve operational efficiency and reduce costs. Price target cannot be accurately determined until profitability improves. Time horizon is medium-term (12-18 months) to allow for potential turnaround.