⚡ Flash Summary

Dadex Eternit Limited’s 2025 annual report reveals a challenging year marked by global economic uncertainties and domestic headwinds. While the company faced a contraction in the construction sector and operational disruptions, it strategically focused on optimizing assets and enhancing efficiencies. The company obtained shareholder approval for property disposals to strengthen liquidity and re-invest in core businesses. Despite a net loss of Rs. 407.047 million, Dadex remains committed to sustainable growth and delivering shareholder value through innovation and disciplined financial management.

📌 Key Takeaways

• 📉 Global economic uncertainty and domestic slowdown impacted Dadex’s performance.
• 🏗️ Construction sector in Pakistan contracted by 2.8% in 2025.
• 🏭 Operational capacity was affected at manufacturing locations.
• 🤝 Shareholders approved disposal of property(ies) for asset optimization.
• 💰 Rs. 27.051 million invested in Hyderabad factory for CC Sheet quality.
• 🏢 Karachi Factory was closed; focus shifts to Hyderabad and Sundar.
• ✅ Compliance maintained with Corporate Governance principles.
• ⚠️ Commercial, financial, and compliance risks identified and mitigated.
• ❌ No final cash dividend declared for the year.
• 🔻 Accumulated loss reached Rs. 1,495.799 million.
• 🧐 Financial statements prepared on a going concern basis.
• 🌱 Sustainability embedded in operations with global ESG principles.
• 🌐 Active in sustainable environment and energy consumption.

🎯 Investment Thesis

Given the ongoing challenges, including declining revenue and accumulated losses, a HOLD recommendation is appropriate. The strategic initiatives aimed at strengthening liquidity are positive, but their impact remains uncertain. I am skeptical that this is going to pay off, but I cannot reasonably produce that it won’t. A short-term HOLD target is difficult to provide given the current volatility.