⚡ Flash Summary

Shield Corporation Limited’s Corporate Briefing Presentation for 2025 reveals a mixed financial performance. Net sales decreased significantly by 23.31% year-over-year, falling to Rs. 2,965,832,976 in 2025. However, the gross profit margin improved by 100 bps to 23.52% due to exchange rate stability and lower commodity prices. The loss per share also improved dramatically from (Rs. 92.99) to (Rs. 3.25), although it remains negative.

📌 Key Takeaways

• 📉 Net sales declined by 23.31% from Rs. 3,867,121,389 in 2024 to Rs. 2,965,832,976 in 2025.
• 📈 Gross profit margin increased by 100 bps from 22.52% to 23.52%.
• 💰 Finance costs reduced significantly by 51.86%, from Rs. 300,970,556 to Rs. 144,893,932.
• ⚠️ Loss per share improved from (Rs. 92.99) to (Rs. 3.25), but remains a loss.
• 👶 Shield Corporation focuses on Baby Care and Oral Care products.
• 🌱 The company was established in 1975 and has 50 years of experience.
• 🛡️ Shield is ISO 9001 and ISO 14001 certified.
• ⭐ The company introduced an ‘Essential Feeder’ at an affordable price.
• 🗣️ A nationwide campaign ‘Hanso Zara Aur Khilkhila Ke Pakistan’ was launched to promote oral hygiene.
• 👩‍⚕️ Free dental check-ups were organized across multiple cities.
• 🤝 Shield partnered with the Karachi Down Syndrome Program for oral care.
• 🌐 The domestic economy is expected to improve in 2026 due to stable exchange rates and lower interest rates.
• 🎯 Challenging targets are set for growth in the coming year with a focus on exports.

🎯 Investment Thesis

HOLD. While the improvement in gross profit margin and reduced finance costs are encouraging, the significant drop in revenue and ongoing losses necessitate caution. I will monitor the company’s ability to reverse the sales decline and achieve sustainable profitability. A price target cannot be assigned until sustainable profitability happens. Time horizon: Medium Term (6-12 months).