⚡ Flash Summary

Matco Foods Limited has executed a Business Transfer Agreement dated November 17, 2025, to carve out and transfer its spice/masala packaging segment under the ‘Falak Foods’ brand to its wholly-owned subsidiary, Falak Foods (Private) Limited. This transfer follows an earlier disclosure on May 9, 2025. The company is informing the Pakistan Stock Exchange and its TRE Certificate Holders about this material development. This strategic move likely aims to streamline operations and potentially unlock value by focusing resources.

📌 Key Takeaways

• ✅ Matco Foods executed a Business Transfer Agreement on November 17, 2025.
• 🤝 The agreement involves transferring the spice/masala packaging segment.
• 🌶️ The segment operates under the brand ‘Falak Foods’.
• 🏢 The transfer is to Falak Foods (Private) Limited, a wholly-owned subsidiary.
• 📅 This follows an earlier disclosure made on May 9, 2025.
• 📢 The Pakistan Stock Exchange is being informed.
• 📜 The transfer is in compliance with Section 96 and Section 131 of the Securities Act, 2015.
• 📑 It is also in accordance with Clause 5.6.1(a) of the Rule Book of the Exchange.
• 💼 Muhammad Noman Ansari, Company Secretary, signed the disclosure.
• 🏢 The registered office is in Karachi.
• 🌐 More information can be found at www.matcofoods.com and www.falakrice.com.
• 🍚 Falak is known for Basmati Rice.

🎯 Investment Thesis

Given the limited information available and the internal nature of the business transfer, a HOLD recommendation is appropriate for MFL. The transfer of the spice/masala packaging segment to a wholly-owned subsidiary suggests a strategic realignment, but the financial implications are unclear without specific figures. A more definitive BUY or SELL recommendation would require a deeper understanding of the segment’s historical performance, the rationale behind the transfer, and the expected synergies or cost savings. Price target remains the same and the time horizon is medium term, as we await further info from the company.