⚡ Flash Summary

Nishat Chunian Limited (NCL) reported a revenue increase from PKR 86.113 billion in 2024 to PKR 88.880 billion in 2025. Gross profit also saw an increase, rising from PKR 8.833 billion to PKR 10.909 billion. However, profit after tax experienced a slight increase from PKR 692 million to PKR 789 million. The market price of NCL shares increased significantly, from PKR 26.21 on June 30, 2024, to PKR 41.12 on June 30, 2025.

📌 Key Takeaways

• Established in 1990, NCL is a leading vertically integrated textile manufacturer in Pakistan.
• NCL has three operational sites and employs over 7,000 people. 🧑‍🤝‍🧑
• The company exports to markets including the US, UK, Europe, Australia, South America, and Pakistan. 🌎
• Expanded The Linen Company retail division with a new store in the UAE in 2025. 🛍️
• Subsidiaries include Nishat Chunian USA, Sweave Inc., NCPropL, and TLC Middle East Trading L.L.C. 🏢
• Revenue increased from PKR 86.113 billion (2024) to PKR 88.880 billion (2025). 📈
• Gross Profit increased from PKR 8.833 billion (2024) to PKR 10.909 billion (2025). 💰
• Profit after tax increased from PKR 692 million (2024) to PKR 789 million (2025). 🚀
• ROE increased from 3.29% to 3.69% for fiscal year 2025. 🎯
• Market price of NCL increased from PKR 26.21 (June 2024) to PKR 41.12 (June 2025). 🌟
• Spinning segment sales decreased by 11.92% in yarn sales. 🧶
• Spinning segment yarn exports decreased by 17.56%.
• Weaving segment sales increased by 19.20%. 🧵
• Home textiles segment sales increased by 3.21%. 🏠
• Dividend yield of 4.86% in 2025.
• Spinning production capacity of 91.69 million Kgs of Yarn per annum, 98.52% capacity utilization. 🏭

🎯 Investment Thesis

Given the modest growth, improved profitability, and reasonable valuation, a HOLD recommendation is appropriate. NCL is expanding its retail presence which should increase future sales. Positive investor sentiment may drive short-term price appreciation, the lack of significant earnings growth does not justify a BUY rating.