📈 GUSM: BUY Signal (7/10) – Financial Results for the Quarter Ended 30.09.2025

📌 Key Takeaways

• 🚀 Profit after tax soared to PKR 8,369,467, a massive jump from PKR 551,142 year-over-year.
• 📈 Earnings per share (EPS) rocketed to PKR 0.57, up from a mere PKR 0.04 in the previous year.
• 💰 No cash dividend was declared, preserving cash for reinvestment or debt reduction.
• 🚫 No bonus shares were issued, maintaining current equity structure.
• ❌ No right shares were offered, indicating sufficient capital for current operations.
• 📊 Sales – net for the quarter hit PKR 8,369,832, against PKR 551,466 in the same quarter last year.
• 📉 Finance cost remained relatively stable, at PKR 365 compared to PKR 324 year over year
• 🏢 Administrative and other expenses significantly increased to PKR 8,369,832 from PKR 551,466
• ✅ Profit before taxation was PKR 8,369,467, demonstrating improved operational efficiency compared to PKR 551,142 last year.
• Balance sheet shows cash and bank balances of PKR 17,260,439 versus PKR 8,527,114 from prior year end
• Trade and other payables amounted to PKR 11,561,690, consistent with the previous year end.
• Mark-up payable to banking companies is PKR 397,535,999

🎯 Investment Thesis

Given the impressive turnaround in profitability and substantial increase in EPS, a BUY rating is warranted. The company seems to have successfully navigated market challenges and improved its operational efficiency. Price Target: Based on a conservative estimate of future earnings growth and applying a sector-average P/E ratio, a price target of PKR 15.00 is set. Time Horizon: Medium Term (12-18 months) to allow the improved financial performance to be reflected in the stock price.