⚡ Flash Summary

Nishat Mills Limited (NML) held a corporate briefing session for FY 2025, as detailed in their announcement. The company presented its profile, strategic developments, and financial results. In FY2025, NML reported revenue of PKR 178.17 billion, a 11.18% increase YoY, while profit after taxation was PKR 6.01 billion, a 5.58% decrease YoY. Despite revenue growth, profitability declined due to increased distribution and admin expenses as well as a fall in other income.

📌 Key Takeaways

• 🏭 NML is one of the largest and leading business groups in Pakistan.
• 💰 The group boasts assets around Rs. 4 trillion.
• 💼 Employs over 54,000 people directly.
• 🏢 Nine companies within the group are listed on the Pakistan Stock Exchange.
• 📜 NML commenced operations as a partnership in 1951.
• 🏢 Incorporated as a private limited company in 1959.
• 📍 Listed on the Karachi Stock Exchange in 1961.
• 🏭 Operates 37 manufacturing units.
• ⚡ Has 8 power plants.
• 💸 Total assets are worth Rs. 265 billion.
• 🧑‍🤝‍🧑 Employs 24,767 employees.
• 📈 Revenue increased by 11.18% YoY, reaching PKR 178.17 billion in FY2025.
• 📉 Profit after taxation decreased by 5.58% YoY, settling at PKR 6.01 billion.
• 🔻 Earnings per share (EPS) decreased from PKR 18.11 to PKR 17.10.
• 🌱 Planning investments in renewable energy and increased yarn production.

🎯 Investment Thesis

HOLD. The company has demonstrated strong revenue growth, but the declining profit margin raises concerns. Future investments in renewable energy and capacity expansion are positive, but the near-term outlook is uncertain. The current valuation reflects these challenges. A hold recommendation is appropriate until clearer trends emerge regarding cost management and profitability.