⚡ Flash Summary
J.K. Spinning Mills Limited reported a 3.43% increase in sales for the quarter ended September 30, 2025, reaching Rs 10,377.897 million compared to Rs 10,034.063 million in the corresponding period of 2024. The profit after tax saw a 2.96% increase, amounting to Rs 308.157 million compared to Rs 205.183 million. Earnings per share (EPS) also improved, with Rs 3.01 compared to Rs 2.01 in the previous year. However, the board of directors decided not to recommend any interim dividend due to volatile market conditions. The company is focusing on cost minimization and capacity enhancement to achieve favorable financial results.
📌 Key Takeaways
- ⬆️ Sales increased by 3.43% YoY, reaching Rs 10,377.897 million.
- ✅ Profit after tax increased by 2.96% YoY, amounting to Rs 308.157 million.
- 📈 Earnings per share (EPS) increased to Rs 3.01 from Rs 2.01 YoY.
- ⚠️ No interim dividend was recommended due to volatile market conditions.
- 🏭 Open-end spinning unit comprising 6,000 rotors has been installed and is working efficiently.
- ⬆️ Cost of sales increased from Rs 8,657.187 million to Rs 8,974.719 million YoY.
- ⬆️ Gross profit increased slightly from Rs 1,376.876 million to Rs 1,403.178 million YoY.
- ⚠️ Finance costs decreased significantly from Rs 578.386 million to Rs 377.856 million YoY.
- ⬆️ Levy and taxation increased from Rs 157.339 million to Rs 177.009 million YoY.
- 🌱 Company is committed to expanding renewable energy projects.
- ✔️ The company is focused on improving its financial position and performance.
- ✔️ The management is proactively addressing challenges through cost minimization and operational optimization.
- ✔️ The company Acknowledges and thanks all stakeholders for the confidence reposed.
🎯 Investment Thesis
Based on the analysis, a HOLD recommendation is appropriate for J.K. Spinning Mills. The company shows revenue and profit growth, but the uncertain market conditions and decision not to issue dividends introduce caution. The target price would be Rs 30.10 based on a P/E of 10x and the current EPS of Rs 3.01. Time horizon is MEDIUM_TERM, anticipating that the company’s strategic initiatives will drive further growth once market conditions stabilize. Further monitoring is needed.
Disclaimer: AI-generated analysis. Not financial advice.