⚡ Flash Summary

Citi Pharma Limited’s 2025 annual report showcases moderate growth in revenue coupled with improved profitability, as evidenced by the increase in EPS and gross profit margin. The company is strategically expanding into high-value therapeutic areas and new ventures like veterinary pharmaceuticals. A final cash dividend of Rs. 3.5 per share was announced, demonstrating a commitment to shareholder returns. However, challenges related to drug pricing regulations and reliance on imported APIs remain relevant.

📌 Key Takeaways

• ⬆️ Revenue increased by 6% year-over-year to PKR 13.15 billion.
• 💰 Gross profit margin improved from 12.4% to 15%.
• 📈 Net profit increased from PKR 833 million to PKR 892 million.
• 💸 Earnings Per Share (EPS) increased from PKR 3.65 to PKR 3.90.
• ✔️ Final cash dividend of Rs. 3.5 per share announced (35% payout).
• 🌐 Focus on expanding collaborations and diversification into new sectors.
• 🏥 Prioritizing healthcare initiatives, including oncology and biosimilars.
• 🔬 Establishing a Bioequivalence & Research Center.
• 💊 Entering the veterinary pharmaceutical segment.
• 🧪 Exploring export opportunities and international Joint Ventures.
• 🌱 Continued emphasis on sustainable growth and innovation.
• ⚖️ Active engagement with Drug Regulatory Authority of Pakistan (DRAP) is highlighted.
• 🛡️ Board remains vigilant on risk management, compliance, and sustainability.
• 🤝 Appreciation extended to shareholders, employees, and stakeholders for their support.
• ⭐ The company will continue to diversify into high value therapeutic areas

🎯 Investment Thesis

Given the moderate revenue growth, improved profitability, and ongoing investments, a HOLD recommendation appears suitable for Citi Pharma Limited. The company’s strategic initiatives, such as expanding into high-value therapeutic areas and establishing new research facilities, indicate potential future growth. However, the continued challenges and regulatory landscape suggest a conservative approach. A price target cannot be determined without a deeper dive into the sector and a comparable peer group analysis with reasonable future growth expectations.