⚡ Flash Summary
Nimir Resins Limited reported encouraging results for the quarter ended September 30, 2025, with all business segments performing well. Revenue increased by 18%, and volumetric growth was even more significant. A substantial reduction in financial costs led to a 77% increase in profit after taxation compared to the same period last year. Consequently, Earnings Per Share (EPS) improved to PKR 0.46 per share, compared to PKR 0.26 per share in the corresponding period last year.
📌 Key Takeaways
- 📈 Revenue from sales increased to PKR 3,061 million from PKR 2,589 million, an 18% increase.
- 💰 Gross profit rose to PKR 273 million from PKR 242 million, a 13% increase.
- Operating profit improved to PKR 187 million from PKR 174 million.
- ✅ Profit after taxation increased significantly to PKR 65 million from PKR 37 million, a 77% rise.
- ⭐ Earnings Per Share (EPS) increased to PKR 0.46 from PKR 0.26.
- 📉 Distribution costs decreased to PKR 39.963 million from PKR 34.659 million.
- Administrative expenses decreased to PKR 45.413 million from PKR 33.798 million.
- 💲 Finance costs decreased substantially to PKR 75.935 million from PKR 109.911 million.
- 🏦 Cash and cash equivalents decreased to PKR 57.796 million from PKR 152.345 million at the end of June 2025.
- ⚠️ Short term borrowings increased to PKR 2,092.434 million from PKR 2,060.468 million.
🎯 Investment Thesis
Based on the strong quarterly performance, particularly the increase in revenue and EPS, a BUY recommendation is warranted. The stabilization in international feedstock prices is a positive sign. Price Target: PKR 35. Time Horizon: Medium Term.
Disclaimer: AI-generated analysis. Not financial advice.