⚡ Flash Summary
Ashfaq Textile Mills Limited (ASHT) held a corporate briefing session for the year ended June 30, 2025. The company reported a gross profit of Rs. 42.636 million, a turnaround from last year’s gross loss of Rs. (36.394) million. This improvement was attributed to increased demand for fabrics and efforts to reduce costs by installing solar panels. However, the company remains skeptical about the next year due to floods and potential US tariff changes.
📌 Key Takeaways
- ✅ Ashfaq Textile Mills Ltd. held a corporate briefing session for the year ended June 30, 2025.
- 📈 Gross profit of Rs. 42.636 million compared to a gross loss of Rs. (36.394) million last year.
- 🏭 Increased demand for fabrics and cost reduction via solar panels contributed to the turnaround.
- ⚠️ The company is skeptical about the next year due to two crucial factors.
- 🌊 Floods in Pakistan could increase raw material prices and reduce purchasing power.
- 🇺🇸 Potential tariffs by the US Government could positively or negatively affect the market.
- 📉 Production has decreased, based on the graph, from 31.5 million Sq. Meters to 12 million Sq. Meters, a decrease of roughly 62% from 2020 to 2025.
- 🧑💼 Average number of employees decreased from roughly 500 in 2020 to 310 in 2025.
- 📊 Share price has increased, going from 8 in September 2020 to 25.7 in June 2025.
- 💰 Revenue reserves have decreased from 255 million in 2020 to 123 million in 2025.
- ⬆️ Sales Revenue increased from Rs. 454.188 million in 2024 to Rs. 456.650 million in 2025.
- ⬆️ Profit After Tax swung from a loss of Rs. (57.851) million in 2024 to a profit of Rs. 5.994 million in 2025.
- ⬆️ Equity increased from Rs. 987.664 million to Rs. 998.501 million.
- ⬆️ Earning per Share swung from a loss of Rs. (1.24) to a profit of Rs. 0.13.
- 🚫 No dividends were issued in either 2024 or 2025.
🎯 Investment Thesis
A HOLD recommendation is appropriate at this time. The company has demonstrated an ability to turn around its financial performance, but faces significant external risks. The positive shift to profitability warrants attention, but the uncertainties surrounding floods and potential US tariffs necessitate a cautious approach.
Disclaimer: AI-generated analysis. Not financial advice.