β‘ Flash Summary
Highnoon Laboratories Limited reported unaudited financial results for the nine months ended September 30, 2025. The company experienced a 9.78% increase in net sales, driven by optimal product mix, volume expansion, and price-led growth. Gross margins expanded to 55% from 50% in the corresponding period of 2024, reflecting a 23% growth. The company achieved a 14% profit-to-sales ratio, with an 11% increase in profit after taxes compared to last year. Basic Earnings Per Share (EPS) increased to Rs. 49.61, compared to Rs. 44.54 in 2024.
π Key Takeaways
- π Net sales surged by 9.78% to Rs. 18,615 million from Rs. 16,956 million in 2024.
- π° Gross profit increased to Rs. 10,313 million, up from Rs. 8,396 million in 2024.
- π Gross margin expanded to 55% from 50% year-over-year.
- π Operating profit grew to Rs. 3,880 million, compared to Rs. 3,125 million in 2024.
- πΌ Operating profit margin improved to 21% from 18% in the previous year.
- π Finance costs decreased to Rs. (91) million from Rs. (169) million in 2024.
- β¨ Profit before tax & levy increased to Rs. 4,122 million from Rs. 3,282 million.
- β Profit after tax & levy rose to Rs. 2,628 million, up from Rs. 2,360 million in 2024.
- β Basic Earnings Per Share (EPS) increased to Rs. 49.61 from Rs. 44.54 in 2024.
- π± Profit after tax and levy for the group increased to Rs. 2,681 million, compared to Rs. 2,396 million in 2024.
- π± Earning Per Share for the group increased to Rs. 50.59 from Rs. 45.22.
- π§ͺ Net sales surged by 9.78%, primarily driven by an optimal product mix and volume expansion and price-led growth
- β Gross Margins expanded from 49.5% to 55.4%, reflecting a 23% growth as compared to corresponding period in 2024.
- πΌ Company is taking advantage of regulatory price changes
π― Investment Thesis
Highnoon Laboratories presents a favorable investment opportunity based on its strong financial performance, revenue growth, and improved profitability. The companyβs strategic initiatives and efficient operations position it well for future growth. BUY with a price target of Rs. 55, based on the increased EPS and positive market trends.
Disclaimer: AI-generated analysis. Not financial advice.