⚡ Flash Summary

Al-Abid Silk Mills Ltd. held a corporate briefing session on November 27th, 2025, focusing on the financial year 2025 and the general outlook. The company, incorporated in 1968 and listed on the Pakistan Stock Exchange, curtailed its manufacturing activities some time ago. Management intends to revive processing units in two phases, starting with the state-of-the-art coating and flocking line, followed by rehabilitating the back-processing and dyeing plant. The company aims to initially target the domestic market and commercial exporters before restoring full-scale exports.

📌 Key Takeaways

• 🏭 Al-Abid Silk Mills was incorporated in 1968 and is listed on the Pakistan Stock Exchange.
• 📍 The company’s registered office and production facilities are located in Karachi.
• 📉 The company has curtailed its manufacturing activities for some time.
• 🔄 Management plans to revive the company’s processing units in two phases.
• ✨ Phase 1 involves restarting production with the state-of-the-art coating and flocking line.
• ✅ All required maintenance for the coating and flocking line has been completed using internal resources.
• 🤝 Negotiations with buyers are underway, with samples developed, and management hopes for bulk production to begin soon.
• 🛠️ Phase 2 includes rehabilitating the back-processing and dyeing plant.
• 🇩🇪 The dyeing plant is equipped with modern machinery from manufacturers in West Germany, Switzerland, and Holland.
• 💰 The company has leased surplus land and buildings for warehousing and storage to generate additional revenue.
• ✅ Major financial liabilities have been settled over the past five years, with efforts to resolve remaining obligations.
• Export-oriented Al-Abid Silk Mills previously exported 100% of its production
• 🎯 The company plans to initially target the domestic market and commercial exporters before restoring full-scale exports.
• 🌐 Management aims to resume exports to major prominent global customers.
• 💸 Loss per share (Rupees) was (10.36) in 2025 compared to 8.66 in 2024.

🎯 Investment Thesis

The stock is a HOLD. The company is currently making losses but has a plan to revive operations. It would be best to wait and see how the company performs when it restarts operations before changing to a buy.