⏸️ ZAL: HOLD Signal (7/10) – Financial Results for the Quarter Ended 2025-09-30

📌 Key Takeaways

• 🚀 Revenue increased to Rs 783.59 million, a substantial increase compared to Rs 191.84 million in the same quarter last year.
• 💰 Profit before taxation soared to Rs 558.18 million, significantly higher than Rs 107.85 million in the corresponding period of the previous year.
• 📈 Basic and diluted earnings per share (EPS) rose to Rs 2.13, up from Rs 0.54 in the same quarter last year.
• 🚫 No cash dividend was declared for the period.
• 📉 Finance costs decreased slightly to Rs 1.61 million from Rs 22,992 in the same period last year.
• 💼 Administrative and general expenses increased to Rs 29.36 million from Rs 9.71 million year over year.
• 🛒 Selling and distribution expenses rose to Rs 43.98 million compared to Rs 10.36 million in the corresponding period of the previous year.
• 🏦 Cash and bank balances decreased to Rs 210.60 million from Rs 323.06 million as of June 30, 2025.
• 🌱 Total assets increased to Rs 3.23 billion from Rs 2.41 billion as of June 30, 2025.
• 📊 Short term Investments increased significantly to Rs 1.58 billion from Rs 792.46 million as of June 30, 2025.
• 🏢 Investment in Subsidiary increased to Rs 117.30 million from Rs 750,000 as of June 30, 2025.
• ⭐ Share premium decreased to Rs 913.48 million from Rs 916.03 million as of June 30, 2025.

🎯 Investment Thesis

HOLD. Zarea Limited’s impressive financial results for the quarter ended September 30, 2025, show a strong growth trajectory. However, the lack of dividends and the need for a deeper valuation analysis suggest a HOLD recommendation. A price target of Rs 8-10 with a time horizon of 12-18 months is set, pending further analysis and sustained performance. This recommendation balances the positive growth with potential risks and the need for more comprehensive valuation data.