⏸️ SEARL: HOLD Signal (5/10) – Financial Results for the Year Ended June 30, 2025

📌 Key Takeaways

• 🎉 Bonus Share Announcement: The Board recommends issuing bonus shares at 15% (15 shares for every 100 shares held).
• 💰 No Cash Dividend: Investors will not receive a cash dividend for the fiscal year 2025.
• 🗓️ AGM Date: The 60th Annual General Meeting is scheduled for October 28, 2025, in Karachi.
• ❌ No Right Shares: The company has not announced any right shares.
• 🛑 Book Closure: Share transfer books will be closed from October 13, 2025, to determine bonus share entitlement.
• 📊 Revenue Decline: Consolidated revenue decreased from PKR 29.4 billion to PKR 28.6 billion, a 2.79% YoY decrease.
• 📉 Net Loss: The company reported a consolidated net loss of PKR 1.37 billion compared to a loss of PKR 2.41 billion last year. A 42.95% decrease in net loss.
• 📉 EPS: Basic and diluted loss per share is PKR (2.73) from continuing operations and PKR (4.96) overall.
• ⬆️ Other Comprehensive Income: Total comprehensive income of PKR 1.144 Billion vs (PKR 2.799 billion)
• 🌱 Improved Gross Profit: Gross profit increased slightly from PKR 12.56 billion to PKR 12.59 billion YoY.
• 💵 Cash Flow from Operations: Consolidated cash flow from operations is negative at (PKR 1.75) billion versus positive PKR 4.73 billion
• ⚠️ Discontinued Operations: Loss from discontinued operations reported at PKR (2.18 billion)
• 📉 Negative Cash: Negative consolidated cash and cash equivalents at the end of the year at (PKR 896) million

🎯 Investment Thesis

HOLD. While the announcement of bonus shares is a positive signal, the lack of cash dividend and slight decline in revenue suggest a cautious approach. Given the limited information, a hold recommendation is appropriate until further detailed analysis of the annual report.