⚡ Flash Summary

SG Allied Businesses Limited (SGABL) reported a significant revenue increase in 2025, driven by growth in its mushroom & vertical farm and warehouse segments. Total revenue reached PKR 183.26 million, a substantial rise from PKR 140.25 million in 2024. Despite increased revenue, the company reported a loss after taxation of PKR 15.17 million in 2025 compared to a loss of PKR 16.14 million in 2024. The company is focusing on expanding its mushroom production and vertical farming operations, utilizing Dutch technology to lower production costs and enhance product quality. SGABL aims to increase sales and reduce electricity costs through solar panels.

📌 Key Takeaways

• 📈 Total revenue increased to PKR 183.26 million in 2025 from PKR 140.25 million in 2024.
• 🍄 Mushroom & VF segment revenue grew from PKR 48.17 million in 2024 to PKR 74.68 million in 2025.
• 📦 Warehouse segment revenue increased from PKR 83.05 million in 2024 to PKR 98.05 million in 2025.
• ❄️ Cold Store revenue increased from PKR 9.03 million in 2024 to PKR 10.54 million in 2025.
• ❌ Loss after taxation was PKR 15.17 million in 2025, an improvement from PKR 16.14 million in 2024.
• 💰 Investment of 20 million rupees in cold storage facilities (2017).
• 🌱 Investment of 7 million rupees in Pakistan’s first vertical farm (2019).
• 🍄 Investment of 10.5 Crore rupees in the mushroom facility (2022).
• 🏭 The company offers an industrial park spanning nearly 400,000 square feet.
• 🤝 Customers include leading supermarkets and restaurants in Karachi.
• 🔆 Plans to reduce electricity costs by adding solar panels.
• 🌱 Expansion of mushroom production and higher yields are expected to lower production costs.
• 🏦 Seeking bank financing, potentially leading to high-interest costs affecting future projects.

🎯 Investment Thesis

Based on the provided information, a HOLD recommendation is appropriate. SGABL demonstrates revenue growth and strategic investments in innovative farming techniques. However, persistent losses and reliance on bank financing pose significant risks. A turnaround in profitability is needed to justify a more positive outlook. Further monitoring of the company’s financial performance and operational efficiency is required. A price target cannot be accurately determined without more comprehensive financial data. The time horizon is MEDIUM_TERM, awaiting further evidence of improved profitability and sustainable growth.