⚡ Flash Summary

Ali Asghar Textile Mills Limited (AATM) held a corporate briefing session in 2025 outlining their transition from a textile spinning unit to logistics, warehousing, solar power generation, and allied investments. The company’s logistics center service revenue experienced a slight decrease from Rs 66.4M to Rs 64.7M year-over-year, but gross profit improved despite this dip. AATM is targeting revenue growth in logistics and has secured a 6-year, Rs 500M logistics services contract. They aim to enhance profitability by mid-2027 and have strengthened their balance sheet through cost control and long-term contracts.

📌 Key Takeaways

• Established in 1969 as a textile spinning unit 🏭.
• Transitioned to logistics and warehousing in 2011 as core business 📦.
• Current operations include logistics centers, solar power, and investments ☀️.
• Logistics center service revenue decreased slightly to Rs 64.7M from Rs 66.4M last year 📉.
• Gross profit improved despite the revenue dip 👍.
• Admin expenses remained stable at Rs 35.7M 📊.
• Operating expenses reduced to Rs 5.1M ✂️.
• Other income increased significantly to Rs 249.9M 💰.
• Profit from operations increased to Rs 235.6M (vs 202.4M) 💪.
• Secured a 6-year, Rs 500M logistics services contract 🤝.
• Value-added warehousing expansion is on hold due to macroeconomic instability ⚠️.
• Completed expansion to over 1,000 kW of solar energy capacity ⚡.
• Market capitalization increased from Rs 700 million to Rs 4 billion 🚀.
• Targeting substantial profitability enhancement by mid-2027 🎯.
• 942,500 kg of CO2 emissions reduced to date 🌿.

🎯 Investment Thesis

HOLD. Ali Asghar Textile Mills Limited has diversified into promising sectors and shown good profitability and financial stability. Given the mix of positives and negatives, a neutral position is warranted. Further clarity on the execution of expansion plans and stabilization of revenue growth is needed to upgrade the recommendation.