⏸️ HATM: HOLD Signal (5/10) – Transmission of Quarterly Report for the Period Ended September 30, 2025.

📌 Key Takeaways

• 📈 Sales increased by 21.67%, reaching Rs. 250.103 million.
• 📉 The company experienced a net loss after taxation of Rs. 10.095 million.
• 📉 Loss per share is (0.76) compared to (0.66) for the prior year quarter.
• 💰 Gross profit increased to Rs. 5.277 million from Rs. 1.974 million.
• 💼 Management is focused on optimizing operations to meet fixed costs.
• ⚠️ Unfavorable external environmental factors have increased the cost of doing business.
• 🏦 The company faces liquidity problems due to ongoing litigation with the bank.
• ⛔️ Working capital financial facilities from the bank remain expired.
• 🤝 Management is negotiating with the bank for a loan settlement.
• 🌱 The settlement aims to regularize the financial limits.
• 🏭 Plans are in place to increase production and make the unit more stable.
• 🛠️ The management intends to make regular investments in plant and machinery.
• 📊 Depreciation charged as expenditure is Rs. 9.22 million.

🎯 Investment Thesis

Given the current financial challenges and ongoing litigation, I recommend a HOLD rating. While the increase in sales is a positive sign, the company’s inability to translate this into profitability and its liquidity issues raise concerns. A potential settlement with the bank and successful restructuring could improve the company’s prospects, but until these uncertainties are resolved, a cautious approach is warranted. Price target is difficult to establish given the limited financial information and the current loss making position. Time horizon is medium term, contingent on the successful resolution of financial challenges.