⚡ Flash Summary

Hala Enterprises Limited (HAEL) held a corporate briefing session on November 27, 2025, to discuss the financial year ended June 30, 2025. HAEL, along with Punjab Oil Mills Ltd, forms the Hala Group, which is a producer of edible oils and soaps. The company’s products include terry towels, kitchen towels, terry cloth, and bathrobes. The briefing likely covered the company’s recent performance, financial results, and future outlook, based on the contents that included turnover, net profit and EPS for the last 5 years.

📌 Key Takeaways

• 🏢 Hala Group consists of two listed companies: Hala Enterprises Limited and Punjab Oil Mills Ltd.
• 🏭 HAEL produces terry towels, kitchen towels, terry cloth, and bathrobes.
• 📊 Turnover increased from 521.606M in 2024 to 553.562M in 2025.
• 📉 Net profit rebounded from a loss of (47.36)M in 2024 to a profit of 13.86M in 2025.
• 📉 EPS recovered from (3.64) in 2024 to 1.07 in 2025.
• 🧵 Weaving capacity is 448,800 KGS annually of Grey Terry.
• 🎨 Dyeing capacity is 2500 KGS per day (Terry Fabric).
• 🛁 Home textile processing capacity is 1000 PCS of Bathrobes Per day.
• 💼 Directors, CEO, and their spouses hold 53.28% of the shares.
• 🤝 Associated Companies hold 30.62% of the shares.
• 🌍 HAEL faces competition from global and local players.
• ⚠️ Instability in raw material prices poses a challenge.
• ⚡ Higher costs of electricity and gas in Pakistan impact profitability.
• ⏰ Delays in government refunds create financial challenges.
• ⬆️ Higher mark-up rates add to the cost of doing business.

🎯 Investment Thesis

Given the recent recovery in profitability and EPS, the investment recommendation is HOLD. While the company has shown improvement compared to 2024, further financial data and analysis are required to assess the sustainability of this recovery and determine a suitable price target. The time horizon for this recommendation is medium-term.