⏸️ BPL: HOLD Signal (5/10) – Financial Results for the Year Ended June 30, 2025

📌 Key Takeaways

• 📉 Sales decreased by approximately 30.2% from PKR 2,377.502 million in 2024 to PKR 1,658.578 million in 2025.
• ✅ The company turned profitable with a profit after taxation of PKR 29.522 million in 2025, compared to a loss of PKR 73.677 million in 2024.
• ⛔ No cash dividend was recommended for the year ended June 30, 2025.
• 🏢 Operating loss improved from PKR (66.103) million in 2024 to PKR (73.240) million in 2025.
• 💰 Other income increased significantly from PKR 65.674 million in 2024 to PKR 166.813 million in 2025.
• ⚠️ Administrative expenses decreased from PKR (117.647) million to PKR (92.789) million.
• ⚠️ Distribution and marketing expenses decreased from PKR (64.197) million to PKR (56.216) million.
• ⬆️ Earnings per share improved from a loss of PKR (3.28) in 2024 to a profit of PKR 1.31 in 2025.
• ⬆️ Revaluation surplus of property increased total comprehensive income to PKR 140.734 million in 2025 from PKR (73.677) million in 2024.
• ⬇️ Cash and cash equivalents decreased from PKR (150.385) million to PKR (119.035) million.
• ✔️ Trade debts decreased from PKR 76.722 million to PKR 40.508 million.
• ✔️ Inventory decreased from PKR 26.348 million to PKR 18.150 million.
• ⬆️ The company improved its Revenue reserves from (141,283) to (111,761)
• ⬆️ Profit before operating charges has improved from (70,253) to 36,651.

🎯 Investment Thesis

HOLD. While the company has shown improvement in profitability and EPS, the decline in sales raises concerns about long-term sustainability. The increase in other income, while positive, may not be consistent. A hold recommendation is appropriate until there is more clarity on revenue growth and operational stability. The fact that the company is in negative cash flow from operations does make this quite risky.