⚡ Flash Summary

Diamond Industries Limited’s 2025 annual report reveals a challenging year. The company suspended industrial operations in January 2023, leading to a significant decrease in sales and a substantial net loss. Despite the losses, the management intends to resume commercial operations when conditions become favorable, supported by its Directors, Sponsors, and Associated Undertakings. The company also decided to restart operations by leasing factory premises with plant and machinery in Lahore.

📌 Key Takeaways

• ⚠️ Industrial operations suspended since January 10, 2023.
• 📉 Net Sales reported at Rs. 18.1 million for 2025, a decrease from prior year.
• 💔 Gross loss of Rs. 150.882 million recorded in 2025.
• 🙁 Operating loss stood at Rs. 153.355 million, compared to Rs. 11.497 million in 2024.
• ⛔ Loss before taxation soared to Rs. 153.302 million in 2025.
• 💸 Net loss after taxation significantly increased to Rs. 153.761 million.
• EPS is negative at Rs. (17.08) versus Rs. (2.69) in the previous year.
• 🏢 Decision to restart operations by leasing a factory in Lahore.
• ✅ Continued financial support from Directors, Sponsors and Associated Undertakings.
• 🏭 Inventory disposed of at a loss due to unsaleable condition.
• 💼 Auditors M/s Zahid Jamil & Co. are retiring, eligible for reappointment.
• 🤝 Directors state compliance with corporate governance as required by SECP.
• ℹ️ Detailed financial statements available on the company’s website (www.dil.com.pk).

🎯 Investment Thesis

Given the ongoing losses and suspension of operations, a HOLD rating is warranted. While management intends to resume operations, the outlook remains uncertain. The current share price reflects these factors, and a price target cannot be reasonably determined until operations restart and profitability returns. The time horizon is MEDIUM_TERM, pending operational improvements.