⚡ Flash Summary
Shadman Cotton Mills Ltd. reported a challenging year with a net loss of PKR 16.57 million, a significant improvement from the PKR 108.70 million loss in the prior year. Revenue decreased from PKR 731.31 million to PKR 509.96 million. The company managed to reduce its losses through other income and cost reductions. Despite the improved bottom line, Shadman Cotton Mills did not recommend any dividend or bonus shares for the period ending June 30, 2025.
📌 Key Takeaways
- 📉 Net loss improved significantly to PKR 16.57 million from PKR 108.70 million YoY.
- Revenue decreased by 30.27% from PKR 731.31 million to PKR 509.96 million. Revenue 📉
- ⚠️ Gross loss of PKR 19.67 million compared to a gross profit of PKR 4.93 million in the previous year.
- 💰 Other income increased significantly to PKR 81.55 million from PKR 63.42 million, helping offset losses.
- 💸 Finance costs decreased from PKR 12.80 million to PKR 5.00 million.
- Levies decreased from PKR 8.08 million to PKR 6.39 million ⬇️
- Taxation swung from an expense of PKR 87.79 million to an income of PKR 18.74 million ⬆️
- ❌ No cash dividend, bonus shares, or right shares were announced.❌
- Earnings per share improved to -PKR 0.94 from -PKR 6.16.
- Total Equity decreased slightly from PKR 818.02 million to PKR 802.13 million.
- Non-current liabilities decreased from PKR 348.06 million to PKR 287.78 million.
- Current liabilities decreased significantly from PKR 491.83 million to PKR 352.88 million⬇️
- Cash and bank balances decreased slightly from PKR 28.45 million to PKR 27.37 million 💸
- Short term investments increased significantly to PKR 109.5 million from PKR 37.86 million ⬆️
🎯 Investment Thesis
The recommendation is HOLD. While the company has shown some improvement in reducing losses, significant challenges remain. The decrease in revenue and reliance on non-operating income are concerning. A more stable operating performance and positive earnings are needed before considering a BUY recommendation. The price target will be based on book value, with a 12-month time horizon, contingent on the company demonstrating consistent profitability.
Disclaimer: AI-generated analysis. Not financial advice.