⏸️ ASHT: HOLD Signal (6/10) – Transmission of Quarterly Report for the period Ended September 30, 2025

📌 Key Takeaways

• 📈 Sales increased by 59.39% year-over-year, reaching Rs. 168.135 million.
• 📉 Operating expenses decreased to 5.70% of sales compared to 7.78% in the same period last year.
• ✅ Gross profit margin improved to 9.39% compared to -10.42% in the prior year.
• 💰 Finance cost remained stable at 0.00% of sales.
• 🏭 Cost of goods sold decreased to 90.61% of sales compared to 110.42% last year.
• ⚠️ Company expresses skepticism about the aftermath of floods in Pakistan, anticipating potential demand decline.
• 🤝 Management is grateful to customers, vendors, and bankers for their trust.
• 🌱 Basic earnings per share is Rs. 0.01 compared to a loss of Rs. -0.04 in the same quarter last year.
• 🏦 Cash and cash equivalents decreased from Rs. 21.719 million to Rs. 9.107 million during the quarter.
• 🧾 Unappropriated profit increased from Rs. 125.934 million to Rs. 136.405 million.
• ✔️ Net cash generated from operating activities is negative at (Rs. 7.515 million) compared to (Rs. 2.782 million) in the same quarter last year.
• ✔️ Profit/ (Loss) for the period is Rs. 5.058 million compared to (Rs. 19.604 million) in the same quarter last year.
• ✔️Total comprehensive income for the period is Rs 10.470 million compared to (Rs. 15.297 million) in the same quarter last year.

🎯 Investment Thesis

HOLD. Ashfaq Textile Mills has shown a significant turnaround in performance this quarter, with substantial sales growth and improved profitability. However, the expressed concern over potential demand decline due to the floods creates uncertainty. A HOLD recommendation is appropriate until the impact of the floods becomes clearer and more sustained positive performance is demonstrated.