⚡ Flash Summary
Loads Limited’s Corporate Briefing Session for FY2025 reveals a strong rebound in financial performance. The company reported a significant increase in revenue, driven by growth in sales to key customers like PSMCL, Indus Motor, and Honda Atlas Cars. This growth, coupled with improved cost management, has led to a substantial increase in gross and operating profits. However, the company plans a rights issue to raise capital, indicating potential funding needs for future expansion.
📌 Key Takeaways
- 📈 Revenue increased to PKR 6,033 million in 2025 from PKR 4,490 million in 2024.
- 💰 Gross profit rose to PKR 1,338 million in 2025 from PKR 879 million in 2024.
- Operating profit surged to PKR 1,190 million in 2025 from PKR 884 million in 2024.
- 📊 Profit after tax improved to PKR 495 million in 2025 compared to PKR 827 million in 2024.
- 💸 Earnings per share (EPS) decreased to PKR 1.97 in 2025 from PKR 3.29 in 2024.
- 🚗 Sales to PSMCL increased from PKR 2,526 million to PKR 3,307 million.
- 🔩 Sales of mufflers increased from PKR 2,647 million to PKR 3,706 million.
- 📉 Sales of sheet metal increased from PKR 1,713 million to PKR 2,096 million.
- 📈 Gross profit ratio improved to 22% in 2025 from 20% in 2024.
- 🏦 Current ratio increased to 1.63 in 2025 from 1.52 in 2024.
- 💸 Break-up value per share increased to PKR 17.18 in 2025 from PKR 15.24 in 2024.
- ⚖️ Debt to equity ratio decreased to 0.43 in 2025 from 0.53 in 2024.
- 🚗 Total OEM sales units increased by 41% from 88,414 in FY24 to 124,374 in FY25.
- New OEMs: The Company is currently in contact with new OEMs for localization of the parts.
- Right Issue: Company plans to issue right shares of 120,000,000 at PKR 12.50 per share
🎯 Investment Thesis
Based on the improved financial performance and future growth prospects, a HOLD recommendation is appropriate. The company’s improved sales and profitability are positive signs, but the proposed rights issue introduces uncertainty. The price target needs careful consideration of the dilution effect and future deployment of funds raised by the rights issue. An investment in Loads Limited is suitable for investors seeking exposure to the growing automotive sector in Pakistan, but they should closely monitor the company’s execution of its expansion plans.
Disclaimer: AI-generated analysis. Not financial advice.