⚡ Flash Summary

Flying Cement Company Limited’s annual report for the year ended June 30, 2025, reveals a period of significant growth and improved financial performance. The company witnessed a substantial increase in gross sales, profit after taxation, and earnings per share compared to the previous year. These positive results were attributed to improved economic activities, increased cement demand, and better price realization. However, the report also highlights ongoing challenges such as rising production costs, geopolitical uncertainties, and competitive pressures.

📌 Key Takeaways

• 🚀 Gross sales surged to Rs. 17,090.7 million in 2025, a significant increase from Rs. 6,172.9 million in 2024.
• 📈 Profit after taxation dramatically increased to Rs. 638.5 million in 2025, compared to Rs. 51.4 million in 2024.
• 💰 Earnings per share (EPS) jumped to Rs. 0.92 in 2025, up from Rs. 0.07 in 2024.
• 💪 Total assets increased to Rs. 28,210 million in 2025, from Rs. 25,287 million in 2024.
• 🏭 Cement production volume rose to 732,420 metric tons in 2025, compared to 321,500 metric tons in 2024.
• 🚚 Cement dispatches reached 741,458 metric tons in 2025, up from 314,854 metric tons in 2024.
• ✅ The gross profit ratio increased to 15.10% in 2025, up from 7.29% in 2024.
• 💼 Operating profit increased substantially to Rs. 1,692.3 million in 2025, from Rs. 329.5 million in 2024.
• 📊 The company maintained a gearing ratio of 28.5%, lower than the industry average of 30%.
• 🌱 The company is committed to environmental protection and sustainable practices.
• 💡 New production line II is undergoing trial production with commercial operations to be announced soon.
• 🤝 The Board maintains continuous oversight over critical aspects and provides strategic guidance.
• 🛡️ Credit rating remains strong with a Long Term rating of A- and Short Term rating of A2 as of April 18, 2025.

🎯 Investment Thesis

Flying Cement Company Limited presents a compelling investment opportunity based on its outstanding financial performance in 2025. The significant growth in revenue, profitability, and EPS, coupled with a strong balance sheet, suggests the company is on a positive trajectory. With the planned expansion of production capacity, the company is poised for further growth. However, investors must carefully assess the risks related to input costs, market conditions, and regulatory compliance. A BUY recommendation is warranted with a price target of Rs 75.00 based on a projected P/E ratio of 8. The time horizon is medium-term, expecting to see the price target reached within 18-24 months.