📈 BBFL: BUY Signal (7/10) – Financial Results for the 1st Quarter ended September 30, 2025

📌 Key Takeaways

• 🚀 Sales surged to PKR 3,886.13 million, a notable increase from PKR 2,227.77 million in Q1 2024.
• 💰 Gross profit reached PKR 813.76 million, up from PKR 493.49 million year over year.
• 📈 Profit from operations soared to PKR 609.07 million compared to PKR 392.63 million in the previous year.
• 💸 Finance costs decreased to PKR 87.31 million from PKR 111.36 million, improving profitability.
• 📊 Profit before tax stood at PKR 521.76 million, a significant rise from PKR 281.26 million in Q1 2024.
• ✅ Profit after taxation increased to PKR 331.95 million from PKR 268.45 million.
• ⭐ Basic earnings per share (EPS) improved to PKR 1.11 from PKR 0.90.
• 🏦 The company has appointed CDC Share Registrar Services Limited as an independent Registrar/Transfer Agent.
• 🌱 Total Assets increased from PKR 12,499.26 million to PKR 13,356.46 million.
• Equity increased to PKR 8,337.50 million from PKR 7,860.93 million.
• Taxation expenses sharply increased to PKR 189.81 million compared to PKR 12.81 million last year.
• ⬇️ Net cash used in operating activities was (PKR 111.45) million compared to PKR 540.94 million generated in the prior year.
• Addition to property, plant and equipment amounted to PKR (123.65) million versus PKR (251.60) million last year.
• Loans from directors increased to PKR 144.63 million from PKR 57.63 million.

🎯 Investment Thesis

BUY. Big Bird Foods has shown strong growth in revenue and profitability. The improved EPS and the company’s strategic initiatives, such as the appointment of a new Registrar/Transfer Agent, indicate positive future prospects. A price target of PKR 1.35, with a time horizon of 12 months, is justified based on the current growth trajectory and potential for further improvements in operational efficiency. The stock is currently undervalued.