⚡ Flash Summary

Din Textile Mills Limited (DTML) held a corporate briefing session in June 2025. The company reported a slight decrease in sales revenue from Rs. 40,154.921 million in 2024 to Rs. 40,118.921 million in 2025. However, the company managed to significantly reduce its loss after tax from Rs. 2,768.498 million in 2024 to Rs. 706.496 million in 2025, leading to a smaller loss per share of Rs. (13.47) compared to Rs. (52.77) in the previous year. The cash flow statement indicates improved operational efficiency, with net cash flows totaling Rs. 643.719 million for 2025.

📌 Key Takeaways

• Established in 1988 and listed on the Pakistan Stock Exchange 🇵🇰.
• Core business involves manufacturing and sales of yarn, Greige Fabrics, and made-ups 🧶.
• Manufacturing capabilities include 136,656 spindles and 144 air-jet looms 🏭.
• Sales revenue slightly decreased from Rs. 40,154.921 million in 2024 to Rs. 40,118.921 million in 2025 📉.
• Loss after tax significantly reduced from Rs. 2,768.498 million in 2024 to Rs. 706.496 million in 2025 ✅.
• Loss per share improved from Rs. (52.77) in 2024 to Rs. (13.47) in 2025 ⬆️.
• Total assets decreased slightly from Rs. 34,736.369 million in 2024 to Rs. 34,488.337 million in 2025 📊.
• Net cash flows improved to Rs. 643.719 million in 2025 🚀.
• Wealth generation & distribution: Employees (40.87%), Government (7.21%), Capital Providers (46.07%), Asset Maintenance (16.57%) 💰.
• Total value added in 2025 reached Rs. 6,598 million, representing 16.37% of gross revenue, up from 12.54% in 2024 ✨.
• Domestic cotton production faces challenges, requiring blending with imported cotton ⚠️.
• Global economic pressures include moderate growth and supply chain realignments 🌍.
• Industry challenges include weather impact on cotton and global recession effects 🤔.
• Six-year performance trends show fluctuating net sales and cost of sales 📈.

🎯 Investment Thesis

HOLD. While DTML has shown improvement in reducing losses and generating positive cash flow, the slight decrease in revenue and ongoing industry challenges warrant a cautious approach. A ‘Hold’ recommendation is appropriate until the company demonstrates sustained revenue growth and consistent profitability.