⏸️ TOWL: HOLD Signal (6/10) – PRESENTATION FOR ANNUAL CORPORATE BRIEFING SESSION 2025

📌 Key Takeaways

• 1. 📈 Revenue increased slightly to Rs. 12.35 billion in 2025 from Rs. 12.32 billion in 2024, a 0.26% growth.
• 2. 📉 Net Profit After Tax (PAT) declined to Rs. 286.71 million.
• 3. 💸 Earnings Per Share (EPS) decreased to Rs. 16.87.
• 4. 🏭 The company’s capacity utilization was approximately 80%.
• 5. 🌍 Global textile market estimated at $2,123.7 billion in 2025 with a CAGR of 7.35% until 2034.
• 6. 🇵🇰 Pakistan’s textile industry contributed 8.5% to the country’s GDP in 2024-2025.
• 7. ⬆️ Pakistan’s textile and apparel exports increased by 7.22% to $17.88 billion.
• 8. ⚠️ Textile exports declined by 0.61% in October 2025 compared to October 2024.
• 9. 🏭 The company manufactures around 20 million pieces of knitted apparel and towels.
• 10. 🔆 The company invested in solar power projects, catering to 40% of its electricity needs with a 1.2 MW capacity.
• 11. 🌿 Committed to sustainability, reducing carbon footprint, and promoting responsible business practices.
• 12. 🏭 Over the last five years, the Company has invested approximately Rs. 1.22 billion in plant and machinery.
• 13. 🎯 Company targets over 5% annual growth despite a negative growth of 23.8% in the first quarter.
• 14. 💼 Company’s NPAT is kept below 5% conservatively for the 2025-26 financial year.

🎯 Investment Thesis

The recommendation is HOLD. While Towellers Limited demonstrates resilience through consistent revenue and investments in sustainable infrastructure, the significant drop in profitability and EPS raise concerns. Until the company can effectively mitigate rising costs and improve margins, a more bullish outlook is not warranted. A neutral rating is appropriate, given that investment will translate into stronger operational performance and improved returns in the coming years. The first quarter of 2026 showing a decline makes a Hold more warranted.