⚡ Flash Summary

Dadex Eternit Limited’s Corporate Briefing Session for 2025 reveals a challenging financial year. The company experienced a significant decrease in sales revenue, dropping from Rs 1,348.496 million in 2024 to Rs 936.616 million in 2025. This decline contributed to a substantial net loss after tax of Rs 407.047 million, a deterioration from the loss of Rs 350.403 million in the previous year. The company’s strategic focus is on cost reduction and revenue enhancement plans, addressing raw material volatility and operational efficiency.

📌 Key Takeaways

• 📉 Sales revenue decreased from Rs 1,348.496 million in 2024 to Rs 936.616 million in 2025.
• 😔 Net loss after tax widened to Rs 407.047 million in 2025 from Rs 350.403 million in 2024.
• 📉 EPS declined to (Rs 37.82) in 2025 compared to (Rs 32.55) in 2024.
• 💰 Equity decreased from Rs 511.890 million in 2024 to Rs 434.804 million in 2025.
• 📉 Operating profit/loss showed a loss of Rs 259.677 million in 2025 compared to a loss of Rs 145.402 million in 2024.
• 📉 Gross Profit Margin Ratio decreased to (5.85%) in 2025 from 5.06% in 2024.
• 📉 Operating Profit Margins (EBIT) % decreased to (33.25%) in 2025 from (12.99%) in 2024.
• 📉 Return on Equity (Gross) % decreased to (93.62%) in 2025 from (68.45%) in 2024.
• ⚡ Electricity & Gas Tariff Pressures identified as a key challenge.
• 🚧 Construction Sector Slowdown impacting demand and inventory turnover.
• 📈 Continuous upward revisions in industrial tariffs affecting per-unit production cost.
• 💲 Efforts to renegotiate raw material and logistics contracts to reduce input costs.
• 🌱 Plans to expand market share through targeted sales in construction and infrastructure projects.
• ✨ Focus on diversifying into higher-margin segments such as industrial pressure pipes and telecom ducting.

🎯 Investment Thesis

Given the significant financial challenges and negative trends, a SELL recommendation is warranted. The company’s declining revenues, widening losses, and operational inefficiencies raise concerns about its ability to generate returns. Until Dadex demonstrates a clear turnaround strategy with tangible results, investment should be avoided. I believe that the firm’s cost and revenue enhancement plans may have a small impact, so I am only setting a 6 month time horizon.