⚡ Flash Summary

Gulistan Spinning Mills Ltd. reported a net loss of PKR 5.94 million for the year ended June 30, 2025, compared to a net loss of PKR 186.25 million in the previous year. The company did not declare any cash dividend, bonus shares, or right shares. The loss per share significantly improved from PKR 12.72 to PKR 0.41. The company’s scheme of arrangement, sanctioned by the court, is set to be implemented.

📌 Key Takeaways

• ❌ The company reported a net loss of PKR 5.94 million for the year ended June 30, 2025.
• 📈 This is a significant improvement compared to a net loss of PKR 186.25 million in the previous year.
• 📉 Loss per share improved from PKR 12.72 in 2024 to PKR 0.41 in 2025.
• 🚫 No cash dividend was declared for the year ended June 30, 2025.
• 🚫 No bonus shares were issued for the year ended June 30, 2025.
• 🚫 No right shares were offered for the year ended June 30, 2025.
• 🗓️ The Annual General Meeting will be held on October 28, 2025.
• 🏦 The share transfer books will be closed from October 21, 2025, to October 28, 2025.
• ⚖️ The Scheme of Arrangement, sanctioned by the Court on October 30, 2023, will be implemented.
• 🏢 Administrative expenses decreased from PKR 1.28 million to PKR 0.37 million.
• 💸 Finance costs slightly increased from PKR 1,098 to PKR 2,051.
• ⚠️ The company’s accumulated losses stand at PKR 1,981.84 million as of June 30, 2025.
• 📉 Total Equity is negative PKR 1,687.14 million.
• 💵 Cash and Bank balances decreased from PKR 16.77 million to PKR 8.53 million.

🎯 Investment Thesis

HOLD. The company’s financial position remains precarious, and the implementation of the scheme of arrangement is crucial for its turnaround. While the reduction in loss and improved EPS are encouraging, substantial risks remain. Monitor the successful execution of the scheme of arrangement and future revenue growth. A price target cannot be accurately determined with the given financials.