⚡ Flash Summary
Suraj Cotton Mills Limited (SURC) reports its Annual Report for the year ended June 30, 2025. The company achieved strong results through operational excellence and strategic investments despite challenges in the textile industry, including rising utility expenses and limited domestic cotton availability. SURC continues to focus on core competencies, diversification, and technological upgrades to sustain profitability. With early signs of economic stabilization, the company remains cautiously optimistic and committed to shareholder value while supporting national economic growth.
📌 Key Takeaways
- Revenue declined by 7.84% to PKR 27.411 billion. 📉
- Gross profit margin increased to 8.34% from 8.06%. 👍
- Operating profit decreased by 7.60% to PKR 2.200 billion. 📉
- Financial costs significantly reduced due to a decline in the policy rate. 💰
- Profit before tax increased by 1.88% to PKR 2.010 billion. ✅
- After-tax profit increased by 11.15% to PKR 1.118 billion. ✅
- Earnings per Share (EPS) improved by 11.16% to PKR 22.92.🚀
- A final cash dividend of PKR 5 per share is proposed. 🎁
- Board assessed its performance as Highly Satisfactory. 💯
- Company is cautiously optimistic about the textile sector outlook. 🍀
- Strategic investments in technology and market diversification are expected. 💡
- Company fully complies with Corporate Governance Code.
- Company is focused on improving efficiencies and reducing costs.
- The company complies with requirements of companies act 2017 and regulations.
- The directors’ profile are given in detail in the annual report for year 2025
🎯 Investment Thesis
Given the modest revenue growth and mixed industry outlook, a ‘HOLD’ recommendation seems appropriate. Positive EPS growth and dividend payout provide some appeal, but it’s tempered by ongoing risks and lack of aggressive growth catalysts. A price target of PKR 130 within the next 12 months is set, contingent on economic stabilization and industry improvements.
Disclaimer: AI-generated analysis. Not financial advice.