⚡ Flash Summary

Masood Textile Mills Limited reported its financial results for the year ended June 30, 2025. The company’s revenue increased slightly to PKR 59,201.77 million from PKR 58,676.93 million the previous year. However, the profit after taxation improved significantly to PKR 131.28 million, a stark contrast to the loss of PKR 470.03 million in 2024. Earnings per share (EPS) also rebounded, reaching PKR 1.20 compared to a loss per share of PKR 7.95 in the prior year.

📌 Key Takeaways

• 🎉 Revenue increased slightly by 0.9% from PKR 58,676.93 million to PKR 59,201.77 million.
• 👍 Profit after taxation turned positive, reporting PKR 131.28 million compared to a loss of PKR 470.03 million in the previous year.
• 📈 Basic EPS improved significantly to PKR 1.20 from a loss per share of PKR 7.95.
• 📉 Diluted EPS also showed marked improvement, reaching PKR 1.11 compared to a loss per share of PKR 7.30.
• ⚠️ Gross profit decreased from PKR 9,525.54 million to PKR 9,020.65 million, a decrease of 5.3%.
• 📊 Distribution costs increased from PKR 3,020.81 million to PKR 3,467.92 million, up by 14.8%.
• 💼 Administrative expenses slightly increased from PKR 1,162.79 million to PKR 1,195.90 million, a rise of 2.8%.
• 💡 Other income increased substantially from PKR 276.49 million to PKR 561.08 million, a jump of 102.9%.
• 💰 Finance costs decreased significantly from PKR 4,999.50 million to PKR 3,858.23 million, a reduction of 22.8%.
• ✅ Profit before levy and taxation increased from PKR 458.02 million to PKR 1,016.38 million, a growth of 121.9%.
• 🧾 Levy decreased from PKR 852.70 million to PKR 623.04 million, a reduction of 26.9%.
• Balance sheet shows a decrease in total assets from PKR 55,151.74 million to PKR 54,310.80 million.
• Total equity increased from PKR 16,681.61 million to PKR 17,139.33 million.

🎯 Investment Thesis

Based on the improved financial performance, particularly the return to profitability and positive EPS, I recommend a BUY for Masood Textile Mills. The turnaround story is compelling. However, further analysis is needed to confirm sustainable improvements. The price target, contingent on further sector analysis and market conditions, is PKR 30.00 with a time horizon of 12-18 months, considering the potential for increased investor confidence and improved market valuation.