📈 FRCL: BUY Signal (8/10) – Presentation For Corporate Briefing Session for the Year Ended June 30, 2025

📌 Key Takeaways

• ✅ Revenue increased by 28.40%, from Rs 3,419.35 million to Rs 4,390.41 million.
• ✅ Profit before tax turned positive at Rs 286.56 million, compared to a loss of Rs 98.93 million in the previous year.
• ✅ Earnings per share (EPS) improved to Rs 3.89 from a loss per share of Rs (2.90).
• 📈 Gross profit increased significantly to Rs 400.89 million from Rs 72.61 million.
• Operating profit rose dramatically to Rs 309.80 million from Rs 6.19 million.
• ⚠️ Finance costs decreased substantially from Rs 143.18 million to Rs 29.10 million.
• 📊 Gross Profit ratio increased from 2.12% to 9.13%.
• 📊 Operating profit ratio increased from 0.18% to 7.06%.
• 📊 Net Profit ratio changed from -3.21% to 3.36%.
• 🏭 Units Sold (SQM) increased from 4,740,907 to 5,956,814.
• 📉 Number of Employees decreased from 787 to 745.
• Balance sheet shows Long Term Financing decreased from Rs 533.26 million to Rs 118.74 million
• 💰 Current assets increased from Rs 1,124.27 million to Rs 1,300.69 million.
• Liabilities reduced slightly as well

🎯 Investment Thesis

Based on the impressive turnaround and improved financial performance, a BUY recommendation is warranted. The company has demonstrated its ability to increase revenue and profitability. The price target will require further analysis, but given the improved EPS, a target of Rs 4.50 seems reasonable, to be achieved in the next 12-18 months, as long as sales stay at or above current levels.