⚡ Flash Summary

Dadabhoy Sack Limited (DBSL) reported un-audited financial statements for the three months ended September 30, 2025. The company experienced an operating loss of PKR 679,464, which is less than the PKR 973,577 loss from the same period last year. The loss per share was PKR 0.17, compared to PKR 0.24 in the prior year, due to no sales from the company. The company is working to attract investors and is hopeful of future growth, despite challenges due to financial difficulties and operational closure since 2008.

📌 Key Takeaways

• 📉 Operating Loss: PKR 679,464 for the quarter ended September 30, 2025.
• 📉 Previous Year Loss: Higher loss of PKR 973,577 for the same quarter in 2024.
• 📉 Loss Per Share: LPS decreased to PKR 0.17 from PKR 0.24 year-over-year.
• ⛔️ Sales: Company reports nil sales, continuing a trend.
• ⚠️ Accumulated Losses: Increased to PKR 40.044 million.
• ⚠️ Current Liabilities: Exceed current assets by PKR 5.423 million.
• 🚧 Operational Closure: Operations have been closed since the financial year 2008.
• 🤝 Financial Support: Reliant on financial support from Directors.
• 🏢 Revaluation Surplus: Fixed assets have a revaluation surplus of PKR 27.591 million.
• 💰 External Finance: Actively seeking finance from external sources.
• ⏳ Going Concern: Financial statements prepared on a going concern basis.
• 🏦 Short-Term Borrowings: Increased from PKR 1,672,690 to PKR 1,674,690.
• 🏦 Bank Balance: Remains at PKR 3,886.
• 📅 Authorization: Financial statements authorized on October 30, 2025.

🎯 Investment Thesis

Given DBSL’s current financial state, a HOLD recommendation is appropriate. While the company is seeking investment and expresses hope for future growth, significant risks and operational challenges remain. Any potential investment requires a high level of risk tolerance and should be contingent on successful restructuring and resumption of operations. We will need to see improvement in key financial metrics like sales and profitability to change our recommendation. Price target is contingent on the company’s successful turnaround. The timeline is MEDIUM_TERM.