⚡ Flash Summary

Pakistan Synthetics Limited (PSYL) presented its corporate briefing for 2025, highlighting its position as a critical packaging supplier to the beverage industry in Pakistan. The company’s revenue increased year-over-year, but gross profit declined slightly. Despite challenges like rising costs and recent floods, management is committed to maintaining market share and profit margins through strategic investments. The company’s mission is to be the most efficient manufacturer of high-performance packaging in Pakistan.

📌 Key Takeaways

• 1. PSL is a key supplier to the FMCG (beverage) industry in Pakistan 🥤.
• 2. Incorporated in 1984, converted to public in 1987, listed on Pakistan Stock Exchange in 1995 🇵🇰.
• 3. Products include Plastic Caps, Crown Caps, PET Resin, and PET Preform 📦.
• 4. Vision: To be an end-to-end solution provider for partners 🤝.
• 5. Mission: To be the most efficient manufacturer of high-performance packaging 🎯.
• 6. Revenue increased from PKR 13,799.512 million in Jun-24 to PKR 16,872.295 million in Jun-25 💰.
• 7. Gross profit decreased from PKR 2,074.116 million in Jun-24 to PKR 1,976.024 million in Jun-25 📉.
• 8. Operating profit decreased from PKR 1,676.831 million in Jun-24 to PKR 1,477.105 million in Jun-25 ⚠️.
• 9. Earnings per share (EPS) increased from PKR 2.51 in Jun-24 to PKR 2.65 in Jun-25 🚀.
• 10. Total assets increased slightly from PKR 11,183.128 million in Jun-24 to PKR 11,198.512 million in Jun-25 👍.
• 11. Shareholder’s equity increased from PKR 4,261 million to PKR 4,628 million 📈.
• 12. Current ratio decreased slightly from 1.19 in 2022 to 1.12 in 2025 ⚠️.
• 13. The company acknowledges challenges including high taxes, duties, fuel costs, and recent flood impacts 😥.

🎯 Investment Thesis

Given the mixed financial performance and external challenges, a HOLD recommendation is appropriate. While the company has shown revenue growth and increased EPS, declining profitability metrics and ongoing risks require careful monitoring. A more positive outlook would depend on the company successfully managing costs, maintaining profitability, and navigating regulatory challenges.