⚡ Flash Summary

Ellcot Spinning Mills Ltd. held its Annual General Meeting on October 28, 2025, where shareholders approved the audited financial statements for the year ended June 30, 2025. A final cash dividend of 40% (Rs. 4 per share) was also approved for the same financial year. M/s. Rahman Sarfraz Rahim Iqbal Rafiq, Chartered Accountants, were re-appointed as auditors for the financial year ending June 30, 2026, and the CEO was authorized to negotiate and fix their remuneration. Additionally, related party transactions for the year ended June 30, 2025, were ratified, and the Board was authorized to approve related party transactions for the financial year 2026.

📌 Key Takeaways

• ✅ Shareholders approved the audited financial statements for the year ended June 30, 2025.
• 💰 A final cash dividend of 40% (Rs. 4 per share) was approved for the financial year ended June 30, 2025.
• 👨‍💼 M/s. Rahman Sarfraz Rahim Iqbal Rafiq were re-appointed as auditors for the financial year ending June 30, 2026.
• 🤝 The CEO is authorized to negotiate and fix the auditor’s remuneration.
• 🤝 Related party transactions for the year ended June 30, 2025, were ratified and confirmed.
• 🏢 The Board of Directors is authorized to approve related party transactions for the financial year 2026.
• 🗓️ These transactions will be placed before the shareholders in the next AGM for formal ratification/approval.
• 💸 The company is authorized to invest up to PKR 200,000,000 in associated companies.
• 🏢 Associated companies include Nagina Cotton Mills Ltd and Prosperity Weaving Mills Ltd.
• 📈 Investments will be in the form of advances and loans.
• ⭐ Return on loans/advances must be no less than the company’s average borrowing cost.
• ⏳ Loans/advances are repayable within one year from the date of disbursement.
• 🗓️ The resolution is valid for 5 years.
• ✔️ The Chief Executive Officer is authorized to make decisions on said investments.
• ✍️ CEO and/or Company Secretary are authorized to execute necessary documents.

🎯 Investment Thesis

Based on the information, a HOLD recommendation is appropriate. The company is distributing dividends and strategically investing in associated companies. However, without more detailed financial data and market context, it’s difficult to justify a BUY or SELL. A price target would require a more comprehensive financial analysis. The time horizon is medium-term (1-3 years) to assess the impact of these strategic investments and their contribution to shareholder value.