⚡ Flash Summary
Sardar Chemical Industries Limited reported an increase in net sales of about 6% compared to last year, reaching Rs. 533.859 million in 2025 from Rs. 503.870 million in 2024. However, gross profit decreased to Rs. 148.404 million from Rs. 175.514 million. The company declared a final cash dividend of 15% or Rs.1.5 per share. They also completed the installation of a solar system at their factory which resulted in substantial savings of Rs. 13.69 million in electricity costs.
📌 Key Takeaways
- ⬆️ Net sales increased by approximately 6% YoY, from Rs. 503.870 million to Rs. 533.859 million.
- 📉 Gross profit decreased from Rs. 175.514 million to Rs. 148.404 million.
- ⚠️ Profit before taxation decreased from Rs. 77.275 million to Rs. 53.454 million.
- ⚠️ Profit after taxation decreased from Rs. 52.536 million to Rs. 45.604 million.
- 📉 Earnings per share (EPS) decreased from Rs. 8.76 to Rs. 7.60.
- 💰 A final cash dividend of 15% (Rs. 1.5 per share) was declared.
- ☀️ Cost savings of Rs. 13.69 million achieved through solar system installation.
- 🏭 Company manufactures approximately 56 products and also optical brighteners.
- 🤝 Board consists of seven directors including three executive, two non-executive and two independent directors.
- ✅ The company is compliant with corporate governance regulations.
- 🌱 The company is committed to environment friendly practices.
- 💹 Value of investments in provident fund account was Rs. 29.564 million as of June 30, 2025.
- ♀️ There is gender pay gap with Male: 203 and Female: 729, with the same hourly wage rate.
- 🏢 Head Office is located in Lahore, while the factory is in Swabi (KPK).
🎯 Investment Thesis
The hold rating reflects the mixed signals from the report. The revenue growth is a positive, but decreased profitability raises concerns. The dividend payout is attractive, but needs to be balanced against long-term growth. Without more financial detail, I can not issue a price target. My target is to monitor Sardar Chemical Industries closely to see if the issues can be resolved. My time horizon is medium term.
Disclaimer: AI-generated analysis. Not financial advice.