⏸️ ARCTM: HOLD Signal (6/10) – CORPORATE BRIEFING PRESENTATION FOR THE YEAR-2025

📌 Key Takeaways

• ✅ Total assets increased to Rs. 890.807 million from Rs. 726.514 million.
• 🏭 Capital expenditure of Rs. 130.220 million incurred on plant and machinery.
• Current assets improved to Rs. 266.339 million compared to Rs. 216.764 million.
• ⬆️ Total equity strengthened significantly, rising from Rs. 267.341 million to Rs. 428.242 million.
• ⚠️ Non-current liabilities stood at Rs. 137.235 million.
• 📉 Current liabilities amounted to Rs. 325.330 million.
• 💰 Revenue from contracts with customers increased to Rs. 2,732,954 thousand from Rs. 1,809,851 thousand.
• 📉 Profit before taxation and levy decreased to Rs. 146,547 thousand from Rs. 183,127 thousand.
• ✔️ Profit after taxation decreased to Rs. 102,519 thousand from Rs. 119,446 thousand.
• 💲 Earnings per share decreased to Rs. 7.78 from Rs. 9.07.
• 🤝 Beacon Impex holds 34.51% shares.
• 🧑‍💼 955 employees as of June 30, 2025.
• 🎯 Focused on mitigating risks through prudent management and efficiency measures.

🎯 Investment Thesis

HOLD. Arctic Textile Mills shows promise with its revenue growth and balance sheet expansion. However, the decline in profitability and EPS is concerning. A hold recommendation is appropriate until the company demonstrates its ability to convert revenue growth into improved earnings. Monitor the company’s next earnings report for improvements in profitability. A price target cannot be reasonably established without further financial details and industry benchmarks.