⏸️ CLOV: HOLD Signal (4/10) – Financial Results for the First Quarter Ended September 30th 2025

📌 Key Takeaways

• 📈 Revenue increased to PKR 1,391.294 million, up from PKR 825.442 million in Q1 2024.
• 📉 Gross profit decreased to PKR 52.463 million from PKR 102.188 million year-over-year.
• ⚠️ Operating profit declined significantly to PKR 33.539 million from PKR 98.004 million.
• 💸 Finance costs increased slightly to PKR 68 thousand.
• 📊 Profit before taxation and levies decreased to PKR 31.290 million from PKR 98.004 million.
• 📉 Profit before taxation dropped to PKR 13.899 million from PKR 87.686 million.
• 📉 Profit for the period decreased significantly to PKR 29.153 million from PKR 87.686 million.
• 📉 Earnings per share (EPS) decreased to PKR 0.75 from PKR 2.25.
• 🌱 Total assets increased to PKR 741.446 million from PKR 653.632 million.
• 💰 Stock-in-trade increased substantially to PKR 466.466 million from PKR 288.100 million.
• 🧾 Trade debts increased to PKR 28.675 million from PKR 16.559 million.
• 🏦 Cash and bank balances increased to PKR 71.890 million from PKR 40.052 million.
• ⚖️ Total shareholders’ equity increased to PKR 561.064 million from PKR 531.911 million.
• liabilities increase to PKR 180.382 million from PKR 121.721 million.

🎯 Investment Thesis

HOLD. While revenue growth is positive, the significant decline in profitability and EPS raises concerns. The company needs to improve cost management and operational efficiency to restore profitability. The price target is under review until the company demonstrates sustainable improvements in its financial performance. A HOLD recommendation is appropriate given the current mixed financial signals.