⏸️ BFAGRO: HOLD Signal (6/10) – Transmission of Quarterly Report for the Period Ended 30-09-2025

📌 Key Takeaways

• 📈 Sales increased by 10% to Rs. 1,878 million compared to the same quarter last year.
• 💰 Gross profit increased to Rs. 235 million from Rs. 224 million year-over-year.
• 🥚 Gross profit margins slightly declined by 0.6% due to rising costs of shell eggs.
• ⚙️ Operating profit improved to Rs. 171.31 million, up from Rs. 151.25 million.
• 💸 Profit before tax rose to Rs. 160.47 million from Rs. 122.03 million.
• ✅ Profit after tax (PAT) increased by approximately 33% to Rs. 161.17 million.
• 📉 Earnings Per Share (EPS) decreased to Rs. 0.52 from Rs. 1.35 due to increased share capital.
• 💵 Finance costs significantly reduced to Rs. 10.84 million from Rs. 29.23 million.
• 🔄 The company is actively pursuing backward integration to stabilize input costs.
• 📊 Total Equity and Liabilities increased to Rs. 3,893.28 million from Rs. 3,841.82 million.
• 🏢 Non-Current Assets increased to Rs. 1,208.66 million from Rs. 826.77 million.
• 💰 Current Assets decreased to Rs. 2,684.62 million from Rs. 3,015.05 million.
• 🤝 The company is expanding capacity, improving efficiency, and strengthening its supply chain.

🎯 Investment Thesis

Given the company’s strong top-line growth and improvements in profitability, but a diluted EPS, a HOLD recommendation is appropriate. BFAGRO is executing well on its operational strategy, but the impact of increased share capital needs to be monitored closely.