⚡ Flash Summary

Amtex Limited’s first quarterly report for September 30, 2025, reveals a period of improved financial performance despite unfavorable market conditions. Sales increased significantly to Rs. 925.48 million compared to Rs. 686.96 million in the corresponding period last year. The company reported a gross profit of Rs. 120.21 million and a net profit of Rs. 10.35 million, both higher than the previous year’s corresponding period. Management expresses confidence in maintaining this upward trend by maximizing capacity utilization and profit margins, while also actively restructuring liabilities to improve cash flow.

📌 Key Takeaways

• 📈 Sales volume increased significantly compared to the previous year.
• 💰 Total sales reached Rs. 925.48 million, up from Rs. 686.96 million.
• 📊 Gross profit improved to Rs. 120.21 million from Rs. 101.06 million.
• ✅ Net profit increased to Rs. 10.35 million from Rs. 6.979 million.
• ✨ Earnings per share rose to Rs. 0.04 from Rs. 0.03.
• 🏦 Liabilities are being restructured/rescheduled with lenders.
• 🌍 Strong demand for Pakistani textile products in the international market.
• 🏭 The company aims to enhance its export business.
• ⚖️ Legal suits filed by banks/financial institutions for recovery of financing are ongoing.
• 🏛️ The company is contesting cost of funds/markup on outstanding amounts in court.
• 🌱 Management vows to maintain increasing trend and maximize profit margin.
• ⚡️ Company faced challenges due to energy crises and difficulty raising financing from banks.
• 🤝 Directors appreciate support from customers, banks, and regulators.
• 💸 Overdue installments of long term finances amounted to Rs. 431.61 million.

🎯 Investment Thesis

Given the improved financial performance, positive sales trends, and strategic focus on exports, a BUY rating is warranted for Amtex Limited. However, this recommendation is contingent on the successful resolution of ongoing litigations and the effective restructuring of liabilities. A price target of Rs. 0.50 (based on a 25% increase from the current EPS) is set for the next 12 months, assuming successful restructuring and improved market conditions.