⚡ Flash Summary

Ghani Chemical Industries Limited (GCIL) reported its financial results for the year ended June 30, 2025. The company’s net sales increased significantly, reaching PKR 7,435.42 million compared to PKR 5,437.39 million in the previous year. Profit after taxation also saw a substantial rise, with PKR 2,016.20 million in 2025 versus PKR 785.81 million in 2024. However, the company did not announce any cash dividend, bonus shares, or rights shares for the period.

📌 Key Takeaways

• 🚀 Net sales surged to PKR 7,435.42 million, a significant increase from PKR 5,437.39 million in the prior year.
• 💰 Profit after taxation jumped to PKR 2,016.20 million, compared to PKR 785.81 million last year.
• 📈 Earnings per share (EPS) increased to PKR 3.92, up from PKR 1.58 in the previous year.
• 🚫 No cash dividend was declared for the year ended June 30, 2025.
• 📊 Gross profit increased significantly to PKR 3,412.03 million from PKR 1,612.51 million.
• 📉 Finance costs increased from PKR 389.37 million to PKR 453.02 million.
• 💼 Total equity decreased slightly to PKR 9,203.37 million from PKR 9,853.57 million.
• 💪🏼 Current assets increased to PKR 6,188.11 million from PKR 5,675.93 million.
• ⚠️ Short term borrowings increased significantly from PKR 1,580.48 million to PKR 2,908.74 million.
• ✔️ Net cash generated from operating activities decreased to PKR 1,555.77 million from PKR 1,715.31 million.
• ❌ No bonus or right shares were announced.
• 🏢 Administrative expenses increased from PKR 242.07 million to PKR 282.11 million.

🎯 Investment Thesis

BUY. Ghani Chemical Industries Limited presents a compelling investment opportunity based on its strong financial performance in FY25. The significant growth in sales and profitability, coupled with improved EPS, indicates strong operational efficiency and market demand. Despite the increase in short-term borrowings and the absence of a dividend announcement, the company’s overall financial health and growth prospects justify a buy recommendation. A price target of PKR 50, with a time horizon of 12-18 months, is set based on projected earnings growth and sector multiples.