⚡ Flash Summary

Elahi Cotton Mills Limited’s corporate briefing for the year ended June 30, 2025, reveals a mixed financial performance. While sales revenue increased from Rs 960.658 million in 2024 to Rs 996.624 million in 2025, the company experienced a significant shift from profit to loss after tax. Specifically, the company made a profit of Rs 10.592 million in 2025 compared to a loss of Rs (25.739) million in 2024. This decline in profitability is further reflected in the EPS, which decreased from 8.15 Rs/Share to (19.80) Rs/Share.

📌 Key Takeaways

• ⬆️ Sales Revenue increased to Rs 996.624 million in 2025 from Rs 960.658 million in 2024.
• 📉 Operating Profit shifted to Rs 22.610 million in 2025 from a loss of (Rs 14.917) million in 2024.
• 📉 Profit/Loss After Tax declined to Rs 10.592 million in 2025 from (Rs 25.739) million in 2024.
• 📉 EPS/LPS decreased to (Rs 19.80) /Share in 2025 from Rs 8.15/Share in 2024.
• 📊 Paid-up Capital remained constant at Rs 13.000 million.
• 📉 Return on Equity decreased to 81.5% in 2025 from (198.1)% in 2024.
• ⬆️ Gross Profit increased significantly to Rs 41.638 million from Rs 2.734 million.
• ⬇️ Administration & Distribution expenses decreased slightly to Rs 16.565 million from Rs 16.829 million.
• ☀️ The company is installing solar systems to reduce energy costs and improve profitability.
• ⚠️ The textile industry is facing slowdowns and increased costs, negatively impacting profit margins.

🎯 Investment Thesis

Given the mixed financial performance and external challenges, a HOLD recommendation is appropriate. While sales increased, the sharp decline in profitability raises concerns. The company needs to demonstrate sustainable profitability improvements before a BUY recommendation can be considered. A price target cannot be provided without additional financial information. The time horizon is MEDIUM_TERM (1-2 years).