📈 GCIL: BUY Signal (8/10) – Presentation of Corporate Briefing Session – GHANI CHEMICAL INDUSTRIES LIMITED

📌 Key Takeaways

• ⬆️ Gross sales increased to PKR 8.739 billion in FY25 from PKR 6.395 billion in FY24.
• ⬆️ Net sales increased to PKR 7.435 billion in FY25 from PKR 5.437 billion in FY24.
• ⬆️ Profit after tax soared to PKR 2.016 billion in FY25 from PKR 786 million in FY24.
• ⬆️ Earnings per share (EPS) surged to PKR 3.92 in FY25 from PKR 1.58 in FY24.
• ✅ EBITDA increased to PKR 3.313 billion in FY25 from PKR 1.865 billion in FY24.
• ✅ EBIT increased to PKR 3.092 billion in FY25 from PKR 1.674 billion in FY24.
• 🏭 The company commissioned its fifth ASU plant at Hattar SEZ in April 2025 with a capacity of 275 TPD.
• 🤝 Entered into a joint venture with Mari Energies Limited to capture and process cold-vent/exhaust gases, expected to generate PKR 17 billion in revenue.
• 🌱 Equity stands at PKR 9.2 billion, driven by retained earnings.
• 💰 Total assets stand at PKR 16.2 billion.
• 🚧 Expansion into the LPG sector is underway with a 450 MT storage and filling plant being established.
• 📉 Long-term loans have been reduced through repayments.
• 🔒 Long-term supply agreements are in place with Attock Refinery and Engro Polymer & Chemicals.

🎯 Investment Thesis

GCIL is a well-positioned player in the industrial and medical gases market in Pakistan. The company’s strong financial performance in FY2025, driven by increased sales and improved operational efficiencies, makes it an attractive investment. The commissioning of the new ASU plant and the joint venture with Mari Energies are expected to drive future growth and profitability. The company’s proactive risk mitigation strategies further enhance its investment appeal. We recommend a BUY rating with a price target of PKR 50 based on a P/E of 12.75x with FY25 EPS and assuming a discount rate of 15% over the next 12 months.