⚡ Flash Summary

Ghandhara Automobiles Limited’s (GAL) annual report for the year ended June 30, 2025, showcases a remarkable turnaround in financial performance. The company has demonstrated resilience and recovery, achieving record sales revenue and profits. The company’s success is attributed to effective management and rising automotive volumes. A final cash dividend of Rs. 10 per share has been recommended, subject to shareholder approval, signaling a return of value to investors.

📌 Key Takeaways

• 🚀 GAL’s revenue soared, marking a significant recovery in the automotive sector, driven by economic stabilization.
• 💪 Real GDP expanded by 2.68% in FY25, supporting the automotive industry’s rebound.
• 🌟 Highest-ever sales revenue and profit achieved, showcasing exceptional financial performance.
• 💰 Standalone net sales reached PKR 23.2 billion, with a gross profit of PKR 3.9 billion.
• 📈 Consolidated net sales hit PKR 34.5 billion, accompanied by a gross profit of PKR 6.4 billion.
• 💲 Standalone earnings per share (EPS) reported at Rs. 41.92.
• 📊 Consolidated EPS reached Rs. 71.85, indicating strong profitability at the group level.
• 🌱 Sustainability initiatives underway, including a 2 MW solar power system installation.
• 🤝 Over PKR 10 billion contributed in taxes to Pakistan’s growth, showcasing commitment to economic development.
• 🌍 ESG focus evident through environmental, social, and governance metrics and initiatives.
• 🛠️ Total employee count increased by 50% to 1,238, highlighting job creation.
• 💡 New models introduced, including JAC T9 Hunter, contributing to increased sales and market presence.
• 🌱 Plans for plug-in hybrid vehicles and further sustainability goals announced, signaling a forward-looking approach.
• 💲 Final cash dividend of 100% (Rs. 10 per share) recommended, subject to shareholder approval

🎯 Investment Thesis

GAL represents a compelling investment opportunity. The company has demonstrated a strong turnaround in financial performance, is committed to sustainability, and is positioned to benefit from growth in the automotive sector. Its focus on new technology and environmental consciousness further supports a bullish outlook.