⚡ Flash Summary
Dadabhoy Cement Industries Limited’s 45th Annual Report for the year ended June 30, 2025, reveals a company still grappling with operational inactivity and accumulated losses. Despite a challenging economic environment, the board is actively pursuing diversification strategies and engaging with prospective investors to revive the company. The Securities and Exchange Commission of Pakistan (SECP) has set aside the winding up order. However, the company continues to operate under a going concern basis with significant accumulated losses of Rs. 782.77 million.
📌 Key Takeaways
- ❌ Accumulated losses increased to Rs. 782.77 million in 2025 from Rs. 770.28 million in 2024.
- 🏭 Operations have been closed since financial year 2009, leading to financial and operational difficulties.
- ✅ The SECP has set aside the winding up order, offering a chance for operational revival.
- 🤝 Management is actively pursuing diversification strategies and engaging with prospective investors.
- 💼 The company is exploring new ventures for diversification, indicating a forward-looking approach.
- 📈 The company’s performance from a business viewpoint remained status quo.
- 🔍 Auditors have drawn attention to material uncertainty related to the company’s ability to continue as a going concern.
- 📜 The profit / (loss) per share stood at Rs. (0.13) in 2025 compared to Rs. 0.05 in 2024.
- 🏢 Administrative expenses increased to Rs. (25,156) from Rs. (17,714).
- 📉 The company continued to be in a loss position.
- ✅ The Board is actively working to seek compliance with regulations and ensure good governance.
- 👔 Total number of directors are seven, with no female directors.
- Auditors S.M Suhail & Co. are compliant with International Federation of Accountants (IFAC) guidelines on code of ethics
- Non-Executive directors voluntarily waived their remuneration for attending board/committee meetings
- The company has not declared dividend or issued bonus shares for the current financial year.
🎯 Investment Thesis
Given DBCI’s operational inactivity, accumulated losses, and the uncertainty surrounding its revival, a HOLD rating is appropriate. While positive developments include SECP’s decision to set aside the winding up order and the board’s efforts to attract investments, the company’s financial position remains weak. A BUY rating is not warranted until concrete steps are taken to resume operations and achieve profitability. A SELL rating isn’t advised as they are actively seeking investers. Price target = highly speculative.
Disclaimer: AI-generated analysis. Not financial advice.