⚡ Flash Summary

J. A. Textile Mills Limited’s corporate briefing for 2025 reveals a challenging financial landscape. The company experienced a significant surge in revenue, jumping from PKR 129.95 million in 2024 to PKR 1,430.99 million in 2025. Despite this impressive increase in sales, the company reported a gross loss of PKR 63.33 million. The company’s accumulated losses have further widened, reaching PKR 140.42 million, and the company also grapples with substantial current liabilities exceeding PKR 460 million. The report paints a picture of a company struggling to convert revenue into profitability, indicating potential operational inefficiencies or high costs of goods sold.

📌 Key Takeaways

• ⬆️ Revenue soared from PKR 129.95 million to PKR 1,430.99 million year-over-year.
• 📉 Gross loss reported at PKR 63.33 million, indicating cost challenges.
• ❌ Accumulated losses widened to PKR 140.42 million.
• ⚠️ Negative EPS of (3.3592) compared to (4.8274) last year.
• 💰 Total Comprehensive Income was PKR 193.62 million, influenced by revaluation surplus.
• 🏢 Total assets stand at PKR 1,251.56 million.
• Liabilities (excluding equity) are PKR 606.28 million.
• 📉 Negative Pre-tax profit/(loss) to sales %: (57.68)
• 💸 Current liabilities at PKR 460.91 million.
• 📉 Fixed Assets (Cost/Revalued) increased to 842.13 million from 556.40 million
• 👎 Negative Earning after tax per share (Rs.): (4.7274)
• 🏦 Loan from related parties increased from 126.29 million to 160.79 million
• 📉 Negative Pre-tax profit/(loss) to capital %: (59.48)

🎯 Investment Thesis

Based on the analysis, a SELL recommendation is warranted. The company’s inability to generate profit despite increased revenue, coupled with rising losses and liquidity issues, presents significant downside risk. A price target significantly lower than the current paid up value of 10 per share is justified, until the company can demonstrate sustainable profitability and improved financial health. Given the current financials, a short-term horizon is recommended.