⚡ Flash Summary

Sardar Chemical Industries Limited (SARC) reported financials for the year ended June 30, 2025, and the quarter ended September 30, 2025. The company declared a 15% dividend (Rs. 1.5 per share) for the year ended June 2025. Full year sales revenue increased to Rs 533.86 million, while quarterly sales reached Rs 143.88 million. Despite increased revenue, profitability metrics such as gross profit margin and net profit margin decreased year-over-year, suggesting cost pressures.

📌 Key Takeaways

• 🗓️ Corporate briefing session covers financials for FY ended June 30, 2025, and Quarter ended September 30, 2025.
• 🏭 Company manufactures dyestuff for textile, leather, and paper industries.
• 🤝 Incorporated in 1989, converted to public limited company on 30-12-1993.
• 🌍 Adheres to green environment policy, manufactures AZO-free dyes.
• 🧑‍💼 Board includes Mrs. Reema Ayaz (Chief Executive), Mrs. Tayybah Mahmood Sadiq (Director), and others.
• 📊 Pattern of shareholding: Individuals hold 69.76% (4,185,526 shares), Directors hold 22.47% (1,348,350 shares).
• 📉 Free float shares are 2,420,700 out of 6,000,000 total, comprising 40.35%.
• 💰 Net Sales for FY 2025: Rs. 533.86 million (vs. Rs. 503.87 million in 2024).
• 📈 Gross Profit for FY 2025: Rs. 148.40 million (vs. Rs. 175.51 million in 2024).
• 📉 Profit before Tax for FY 2025: Rs. 53.45 million (vs. Rs. 76.98 million in 2024).
• 📉 Profit after Tax for FY 2025: Rs. 45.60 million (vs. Rs. 52.33 million in 2024).
• 💸 Earning Per Share for FY 2025: Rs. 7.60 (vs. Rs. 8.72 in 2024).
• ✔️ Gross Profit Margin for FY 2025: 27.80% (vs. 34.83% in 2024).
• ✔️ Net Profit Margin for FY 2025: 8.54% (vs. 10.39% in 2024).
• 💸 Declared dividend of 15% i.e. Rs. 1.5/- per share for FY ended June 30, 2025.

🎯 Investment Thesis

HOLD. While the revenue growth is positive, the declining profitability and margins raise concerns. The declared dividend provides some support, but a clearer understanding of the cost pressures and future growth strategies is needed. A HOLD recommendation is appropriate until the company demonstrates its ability to improve profitability and maintain margins. The price target rationale is not clear based on the limited financial information presented. A deeper analysis, including a DCF valuation and peer comparison, is needed to provide a specific price target.