⚡ Flash Summary

Bawany Air Products Limited (BAPL) reported a net loss of PKR 54.049 million for the year ended June 30, 2025, a significant increase from the PKR 22.623 million loss in the previous year. This increase was primarily driven by expenses related to the enhancement of authorized capital, amounting to PKR 43.86 million. The company is shifting its business focus from gas manufacturing to investment and securities and has signed an agreement to acquire Alman Seyyam Sugar Mills (ASSML). A key positive is the removal of the company from the PSX non-compliant counter to the normal trading counter.

📌 Key Takeaways

• ⚠️ Net loss increased significantly to PKR 54.049 million in 2025 from PKR 22.623 million in 2024.
• 📉 Accumulated losses rose to PKR 104.279 million as of June 30, 2025.
• 💼 Business transformed from gas manufacturing to investment and securities.
• 🤝 Agreement signed to acquire 100% of Alman Seyyam Sugar Mills (ASSML).
• 💰 Authorized capital raised to PKR 11 billion.
• 🏭 ASSML’s 10,000 MT/day sugar plant is expected to generate dividends and enhance shareholder value.
• 📈 Company shifted from the PSX non-compliant counter to the normal trading counter.
• ✔️ Current assets grew substantially to PKR 3,184.701 billion in 2025.
• ❌ Revenue remains at zero.
• 📉 Negative earnings per share of (PKR 7.20).
• ✔️ Company intends to proceed with Right Shares after SECP’s approval.
• ⚠️ Auditors report on going concern due to losses and increase in authorised capital fee

🎯 Investment Thesis

Given the current financial performance and the speculative nature of the company’s future prospects, a HOLD recommendation is appropriate. The company’s future success is dependent on factors. The company is in transition and needs to demonstrate revenue growth and profitability before a more positive investment thesis can be considered. Price Target: Speculative and dependent on successful execution of new strategy.