⏸️ MUGHAL: HOLD Signal (5/10) – Corporate Briefing Presentation – FY 2025

📌 Key Takeaways

• 📉 Gross sales decreased from Rs. 105,554 million to Rs. 102,792 million.
• ⚠️ Profit for the year declined significantly from Rs. 1,999 million to Rs. 965 million.
• 📉 Earnings per share (EPS) decreased from Rs. 5.96 to Rs. 2.83.
• ⬆️ EBITDA increased slightly from Rs. 7,553 million to Rs. 7,656 million.
• ⬆️ Profit before levies and taxation increased from Rs. 618 million to Rs. 1,357 million.
• ⬆️ Contribution to the national exchequer increased from Rs. 16,969 million to Rs. 18,236 million.
• ⬆️ Shareholders’ equity increased from Rs. 26,135 million to Rs. 28,819 million.
• ⬇️ Number of employees decreased from 2,216 to 2,080.
• 📉 Gearing ratio decreased from 56.96% to 49.31%.
• ⬆️ Break-up value per share increased from Rs. 77.87 to Rs. 78.17.
• ⬆️ Current ratio increased from 1.23 to 1.33.
• ✔️ Ferrous segment contributed 82% to overall revenue, increasing by 6.40% YoY.
• ❌ Non-Ferrous contribution decreased by 31.62%.
• 🌱 Focus on sustainability and ESG initiatives.
• 🔄 Strategic decision to upgrade the Bar Mill and progress with Mughal Energy Limited.

🎯 Investment Thesis

Based on the FY2025 results, a HOLD recommendation is appropriate for Mughal Steel. While the company has taken steps to improve efficiency and sustainability, the significant decline in profitability and EPS raises concerns. The strategic initiatives and potential for increased ferrous volumes offer some upside, but a more positive outlook will depend on improved financial performance and a more favorable economic environment. The price target needs to be revised downwards, and the time horizon is medium-term.