⚡ Flash Summary
Agritech Limited’s corporate briefing session for 2025 reveals a positive trajectory in revenue and profitability for the nine months ending in 2025. Revenue increased by 24% to PKR 23.63 billion, while gross profit rose by 16% to PKR 3.94 billion compared to the same period in 2024. Net profit also experienced growth, reaching PKR 2.2 billion, and earnings per share (EPS) stood at PKR 4.25. The company’s focus on enhancing production efficiency at the Urea plant and expanding the SSP plant indicates a strategic approach towards future growth.
📌 Key Takeaways
- 🚀 Agritech’s revenue for the nine months of 2025 reached PKR 23.63 billion, a 24% increase from PKR 19.02 billion in the same period of 2024.
- 💰 Gross profit increased by 16% to PKR 3.94 billion in 2025 from PKR 3.39 billion in 2024.
- 📈 Operating profit rose to PKR 5.91 billion for the nine months of 2025, compared to PKR 3 billion in the same period last year.
- 🌱 Net profit reached PKR 2.2 billion, contrasting with a net loss of PKR 2.09 billion in the previous year.
- ⭐ Earnings per share (EPS) stood at PKR 4.25 for the period, a significant improvement from a loss per share of PKR 4.91 in 2024.
- 🏭 The Urea plant has a capacity of 433,000 MT, while the SSP plant has a capacity of 81,000 MT.
- 🤝 Fauji Group & Maple Leaf Group acquired a major shareholding in Agritech Limited in 2024.
- 📊 Debt to equity ratio is 63% in Sep 2025 vs 71% in Dec 2024.
- ✅ Current Ratio improved to 0.5 times in Sep 2025 from 0.44 times in Dec 2024.
- 📉 Industry YTD sales of Urea decreased by 8% from 4,573 KT in Sep 2024 to 4,205 KT in Sep 2025.
- ⬆️ AGL YTD sales of Urea increased by 33% from 194 KT in Sep 2024 to 259 KT in Sep 2025.
- ⬇️ Industry YTD sales of SSP decreased by 12% from 556 KT in Sep 2024 to 492 KT in Sep 2025.
- ⬆️ AGL YTD sales of SSP increased by 43% from 7 KT in Sep 2024 to 10 KT in Sep 2025.
- Future CAPEX is allocated to improving production and energy efficiency at the Urea Plant.
- Future plans include expansion of the SSP Plant.
🎯 Investment Thesis
Agritech Limited presents a BUY opportunity based on its strong financial performance, growth prospects, and strategic initiatives. The company’s focus on improving production efficiency and expanding its SSP plant should drive future growth. A price target of PKR 6.00 within a 12-month time horizon is justified, considering the growth in revenue, profitability, and EPS.
Disclaimer: AI-generated analysis. Not financial advice.