⚡ Flash Summary

Hala Enterprises Limited (HAEL) reported its 1st quarterly report for the period ended September 30, 2025. The company experienced a remarkable improvement in performance compared to the corresponding period last year. Sales increased significantly from Rs. 88 million to Rs. 169 million due to a strategic shift towards value-added product lines. The company has successfully converted a net loss of Rs. 11 million last year to a net profit of Rs. 3 million this year, showcasing improved profitability.

📌 Key Takeaways

• 🚀 Sales increased from Rs. 88 million to Rs. 169 million, indicating strong revenue growth.
• 📈 Gross profit rose from Rs. 17 million to Rs. 31 million, reflecting enhanced operational efficiency.
• ✅ Net loss of Rs. 11 million converted to a net profit of Rs. 3 million, showcasing improved profitability.
• 🏭 Investment in new Air Jet looms from China for USD 217,600 to enhance production capacity.
• 🌍 Focus on value-added and technically advanced product lines to boost margins.
• 🤝 Appreciation extended to customers, suppliers, and bankers for their support.
• 💰 Total Share Capital and Reserves increased from Rs. 419,181,749 to Rs. 489,987,734.
• 📉 Accumulated loss decreased from Rs. (63,076,981) to Rs. (58,391,346).
• 🏦 Loan from Director increased from Rs. 120,000,000 to Rs. 188,000,000.
• 💸 Cash and bank balances significantly increased from Rs. 3,090,932 to Rs. 84,674,886.
• 🌱 Earnings per share improved from (Rs. 0.83) to Rs. 0.24.
• 👍 Total comprehensive income turned positive, from (Rs. 11,457,852) to Rs. 2,805,986.

🎯 Investment Thesis

I recommend a BUY rating for Hala Enterprises (HAEL) with a price target of Rs. 35 per share within a medium-term horizon (12-18 months). The rationale is based on the company’s successful turnaround strategy, significant revenue growth, and improved profitability. The investment in new machinery is expected to enhance production efficiency and further drive earnings. However, investors should closely monitor the company’s debt levels and operational performance.