⚡ Flash Summary
Azgard Nine Limited’s corporate briefing session presentation for the financial year ended June 30, 2025, reveals a mixed bag of results. The company’s revenue increased to Rs. 40.605 million, while net profit reached Rs. 702 million. However, rising input costs, monsoon floods impacting cotton crops, and increased minimum wages have eroded margins. Management focuses on higher-margin products and strong customer relationships.
Signal: HOLD ⏸️
Strength: 5/10
Sentiment: NEUTRAL
Time Horizon: MEDIUM_TERM
📌 Key Takeaways
- 🏭 Revenue increased to Rs. 40.605 million in 2025.
- ✅ Net profit reached Rs. 702 million in 2025.
- 🧶 Yarn capacity is 15K ton/year.
- 🧵 Fabric capacity is 42 million meters/year.
- 👕 Garment capacity is 13 million pcs/year.
- 💰 Turnover is $145 million.
- 🧑💼 Employs 8310 people.
- 🔄 Upto 60% recycled content in yarns.
- ♻️ Upto 30% recycled content in fabrics and garments.
- 🌱 Aims to be zero waste and carbon neutral by 2030.
- 💡 Spinning capacity is 855 bags per day.
- 👖 Denim production is 23.28 million meters in 2025.
- 👚 Garment production is 11.98 million pcs in 2025.
- 💸 Proceeds from Muzaffargarh unit sale are being received.
- 📅 Agent banks extended transaction timeline to December 31, 2025.
🎯 Investment Thesis
Given the increasing revenue, but ongoing margin pressure and rising risks, a HOLD recommendation is appropriate at this time. Need to see consistent margin improvements and reduced debt to turn bullish. There is no sufficient data to provide a price target.
Disclaimer: AI-generated analysis. Not financial advice.