📈 MUGHAL: BUY Signal (7/10) – Financial Results for the Quarter Ended September 30, 2025

📌 Key Takeaways

• 📈 Mughal Iron & Steel’s gross sales decreased to PKR 22.62 billion from PKR 24.65 billion in the same quarter last year.
• 💰 The company swung to a profit of PKR 925.7 million compared to a loss of PKR 23.7 million last year.
• ⭐ Earnings per share jumped to PKR 2.51 from a loss of PKR 0.07.
• 📉 Finance costs significantly decreased from PKR 1.89 billion to PKR 951.04 million, boosting profitability.
• 📊 Gross profit margin increased from 8.08% to 15.28% year-over-year.
• ✅ Total Assets increased to PKR 71.15 billion compared to PKR 67.69 billion in the previous year, indicating growth.
• 🏦 Cash and bank balances decreased slightly to PKR 2.45 billion from PKR 2.72 billion.
• ⚠️ Short-term borrowings increased substantially to PKR 26.09 billion from PKR 22.88 billion.
• 🚀 Net cash used in operating activities improved from (PKR 1.42 billion) to (PKR 2.44 billion) showcasing greater efficiency.
• 👍🏼 Increase in total equity to PKR 29.59 billion as compared to PKR 28.82 billion in the previous year.

🎯 Investment Thesis

Based on the improved profitability, increased EPS, and demonstrated cost management, a BUY rating is warranted for Mughal Iron & Steel. The company’s ability to turn a loss into a substantial profit in a challenging environment suggests strong management and potential for further growth. A price target of PKR 60, representing a 20% upside from the current market price, seems reasonable, with a time horizon of 12-18 months.