⏸️ PRWM: HOLD Signal (5/10) – Transmission of Quarterly Report for the Period Ended 30/09/2025

📌 Key Takeaways

• 👍 After-tax profit surged to Rs. 46.18 million, a significant increase from Rs. 20.23 million SPLY.
• 📈 Earnings per share (EPS) increased to Rs. 2.50, compared to Rs. 1.09 SPLY.
• 📉 Sales revenue decreased by 8.46% to Rs. 4,681.61 million from Rs. 5,114.24 million SPLY.
• 🧵 Gross profit margin improved to 6.76% from 6.61% SPLY due to cost efficiencies.
• 💰 Operating expenses decreased to 3.01% of sales compared to 3.34% SPLY.
• 💸 Finance costs decreased to 0.95% of sales from 1.68% SPLY, driven by better cash flows and lower policy rates.
• ⚠️ The textile industry faces challenges, including weak demand and cheap fabric imports.
• ⚡ Company is increasing solar capacity to reduce energy costs.
• ✔️ State Bank of Pakistan’s (SBP) policy rate stability supports cost and revenue forecasting.
• 🌾 Kapas (seed cotton) arrivals increased by 49.24% to 3.044 million bales.
• 🏢 Total Assets increased to Rs. 7,444.68 million compared to Rs. 7,101.40 million on June 30, 2025.
• ✔️ The company actively implements cost-efficiency measures and targeted marketing.
• 🤝 The company acknowledged support from bankers and stakeholders.
• ✔️ The company emphasizes diligence and devotion of the staff and workers of the Company.

🎯 Investment Thesis

Given the mixed results—revenue decline offset by improved profitability and EPS—and the challenging outlook for the textile industry, a HOLD recommendation is appropriate for PRWM. The company shows improved cost management and efficiency, but external factors pose significant risks. Investors should monitor sales revenue trends and industry conditions. Price target and time horizon depend on future performance and sector developments.