⚡ Flash Summary

Dost Steels Ltd. reported a profitable year ending June 30, 2025, reversing a loss from the previous year. The company achieved a profit of Rs. 302.46 million, with earnings per share (EPS) of Rs. 0.68, compared to a loss of Rs. 242.24 million and negative EPS of Rs. -0.65 in 2024. No cash dividend, bonus shares or right shares were recommended. The Annual General Meeting is scheduled for October 28, 2025.

📌 Key Takeaways

• ✅ Dost Steels turned profitable, reporting Rs. 302.46 million profit compared to a Rs. 242.24 million loss last year.
• 📈 Earnings per share (EPS) improved to Rs. 0.68 from a loss per share of Rs. -0.65.
• 💰 Equity increased significantly from Rs. 311.65 million to Rs. 6.45 billion.
• 🧱 Total assets surged from Rs. 2.59 billion to Rs. 10.29 billion.
• 🚫 No cash dividend was declared for the year ended June 30, 2025.
• 🗓️ Annual General Meeting scheduled for October 28, 2025.
• ⚠️ Gross loss of Rs. 38.61 million, indicating challenges in cost of sales management.
• 💸 Finance costs decreased from Rs. 177.22 million to Rs. 129.25 million.
• ⭐ Other income increased substantially to Rs. 481.78 million from Rs. 18.24 million.
• 👍 Break-up value per share increased significantly from Rs. 0.70 to Rs. 14.51.
• Liabilities increased from Rs. 2.28 billion to Rs. 3.84 billion.
• 🏦 Cash and cash equivalents decreased from Rs. 914,217 to Rs. 676,819.

🎯 Investment Thesis

Based on the turnaround to profitability and significant balance sheet improvements, a BUY recommendation is warranted. The company has shown strong potential to sustain profitability and improve operational efficiency. An initial price target of Rs. 18, based on a conservative 1.25x book value, seems appropriate. The time horizon for achieving this price target is medium-term (12-18 months), pending further evidence of sustained profitability and operational improvements.