⚡ Flash Summary

Mughal Steel’s annual report for the year ended June 30, 2025 reveals a mixed financial performance. While the company demonstrated resilience amid a cautious economic recovery in Pakistan, withstanding challenges like administrative import controls and currency pressures, its topline experienced a slight decrease. Profitability also suffered, as the profit for the year declined despite increases in EBITDA and profit before levies and taxation. The company emphasizes a strong commitment to sustainability, governance, and stakeholder value, although these aspects do not seem to have translated to improved financial performance.

📌 Key Takeaways

• 📉 Revenue declined to Rs. 102,792 million, a decrease from Rs. 105,554 million in 2024.
• 📈 EBITDA increased slightly to Rs. 7,656 million (2024: Rs. 7,553 million).
• 📈 Profit before Levies and Taxation more than doubled to Rs. 1,357 million (2024: Rs. 618 million).
• 📉 Profit for the Year declined to Rs. 965 million (2024: Rs. 1,999 million).
• 📉 Earnings per Share (EPS) decreased significantly to Rs. 2.83 (2024: Rs. 5.96).
• ✔️ Number of Employees decreased to 2,080 (2024: 2,216).
• ✔️ Gearing Ratio improved to 49.31% (2024: 56.96%).
• ✔️ Break-up Value per Share increased to Rs. 78.17 (2024: Rs. 77.87).
• ✔️ Total Assets decreased to Rs. 67,693 million (2024: Rs. 69,077 million).
• ✔️ Shareholders’ Equity increased to Rs. 28,819 million (2024: Rs. 26,135 million).
• ✔️ Current Ratio improved to 1.33 times (2024: 1.23 times).
• 📈 Contribution to the National Exchequer increased to Rs. 18,236 million (2024: Rs. 16,969 million).
• ✔️ A 1.5 MW solar power plant has been commissioned, contributing to cleaner energy sources.

🎯 Investment Thesis

Based on the data available at this time, a HOLD decision is recommended due to the combination of decreased revenues, EPS and increased EBITDA which may indicate a mixed outlook. A more firm decision will depend on additional data and analysis. There is no specific price target set for this company.