📈 PASM: BUY Signal (7/10) – Financial Results For The Year Ended 30-06-2025

📌 Key Takeaways

• 💰 Profit after taxation soared to PKR 39.14 million, a substantial increase from PKR 14.09 million in 2024.
• 📈 Earnings per share (EPS) jumped to PKR 2.26, compared to PKR 0.81 in the previous year.
• ❌ No cash dividend was recommended by the board for the year.
• 🚫 Bonus shares were not announced.
• ❌ Right shares were also not recommended.
• ⬆️ Revenue increased significantly, as reflected in the profit from operations which rose to PKR 41.03 million from PKR 14.90 million.
• ⚠️ Accumulated losses decreased from PKR 1,412.82 million to PKR 1,373.68 million.
• 🏦 Loan from sponsors decreased from PKR 175 million to PKR 148.51 million.
• 🧾 Total assets decreased from PKR 40.77 million to PKR 26.01 million.
• 📉 Total equity improved from negative PKR 588.89 million to negative PKR 576.24 million.
• 💸 Cash and cash equivalents decreased from PKR 12.15 million to PKR 8.38 million.

🎯 Investment Thesis

I recommend a BUY rating for Paramount Spinning Mills Ltd. The company’s improved financial performance, as evidenced by the significant increase in profitability and EPS, makes it an attractive investment. The management’s strategic decisions, such as reinvesting profits, could lead to further growth. However, investors should closely monitor the company’s cash flow and working capital management. A price target of PKR 4.00, with a time horizon of 12 months, is justified based on the improved earnings potential and growth prospects.