⚡ Flash Summary
Mughal Energy Limited’s FY 2025 corporate briefing highlights the company’s ongoing efforts to establish a 36.50 MW captive hybrid power plant. The company has achieved a milestone with the completion of the hydro testing phase, a critical step in ensuring the integrity of the plant’s systems. Financial figures indicate an increase in total assets from Rs. 5,142 million in 2024 to Rs. 7,239 million in 2025, while also experiencing a higher loss per share, moving from Rs. 0.11 to Rs. 0.12. The company’s entity rating by PACRA remains stable, with a long-term rating of A and a short-term rating of A2.
📌 Key Takeaways
- 🏭 Mughal Energy focuses on setting up a 36.50 MW hybrid captive power plant.
- ✅ Hydro testing phase successfully completed, a crucial project milestone.
- 📈 Total assets increased from Rs. 5,142 million (2024) to Rs. 7,239 million (2025).
- 📉 Loss per share rose slightly from Rs. 0.11 (2024) to Rs. 0.12 (2025).
- 💰 Capital expenditure increased from Rs. 1,316 million (2024) to Rs. 1,793 million (2025).
- ⬆️ Total Liabilities increased significantly from Rs. 1,686 million in 2024 to Rs. 3,805 million in 2025.
- 🏦 Equity remained relatively stable, decreasing slightly from Rs. 3,456 million in 2024 to Rs. 3,435 million in 2025.
- 📜 Company incorporated in Pakistan on August 19, 2012, listed on the GEM Board of the Pakistan Stock Exchange.
- ⚡ Company’s primary business is generating, purchasing, and trading electricity.
- ⭐ Pakistan Credit Rating Agency (PACRA) rating: Long-term A, Short-term A2, Outlook stable.
- ⬆️ Property, plant, and equipment increased due to imported assets and construction work.
- 💰 Due from the government increased, mainly attributable to advance tax payments.
- 💸 Long-term financing increased due to a Rs. 2,500 million loan from Mughal Iron & Steel Industries Limited.
🎯 Investment Thesis
Given the pre-revenue stage and ongoing investments, a HOLD rating is appropriate for Mughal Energy. The company is currently focused on completing its 36.50 MW hybrid captive power plant. The successful commencement of operations is critical for future revenue generation and profitability. A BUY rating would be considered after the plant is operational, revenue visibility improves, and profitability trends are established. Price target and time horizon will be re-evaluated once the plant is operational.
Disclaimer: AI-generated analysis. Not financial advice.