⚡ Flash Summary

Sardar Chemical Industries Limited (SARC) reported its unaudited financial results for the first quarter ended September 30, 2025. The company experienced a notable increase in net sales, rising by 21.79% compared to the same quarter last year, primarily driven by stable exchange rates and increased sales volume. Profit before taxation doubled, indicating improved operational efficiency and market demand. The company also benefited from cost savings due to solar energy usage, reducing power costs by Rs. 3.49 million compared to Q1 2024.

📌 Key Takeaways

• 📈 Net sales increased by 21.79% to Rs. 143.88 million (vs Rs. 118.14 million in Q1 2024).
• 💹 Profit before taxation doubled to Rs. 32.106 million (vs Rs. 16.031 million in Q1 2024).
• 💰 Profit after taxation rose significantly to Rs. 23.036 million (vs Rs. 12.772 million in Q1 2024).
• ⭐ Earnings per share (EPS) increased to Rs. 3.84 (vs Rs. 2.13 in Q1 2024).
• ☀️ Cost savings of Rs. 3.49 million achieved through solar energy utilization.
• 🏭 Increase in demand noted for dyes used in textile, dyeing, printing, leather, and paper industries.
• 📊 Stable exchange rates played a vital role in increased sales in both quantity and value.
• 🌱 Future prospects are positive due to favorable financial indicators.
• ⭐ Focus remains on maintaining quality products to meet international standards.
• 🤝 Acknowledgment given to customers, staff, and workers for their support and dedication.
• ⚡️ Solar system generated electricity, reducing power costs.
• ✔️ Total assets increased to Rs 481.07 million from Rs 466.97 million
• ✔️ Revenue reserves increased from 254.75 million to 277.79 million

🎯 Investment Thesis

Sardar Chemical Industries is a BUY. The company’s strong Q1 2025 results, driven by increased sales, improved profitability, and cost savings from solar energy, indicate a positive growth trajectory. A price target of Rs 50, based on a P/E ratio of 13 applied to the current EPS of Rs 3.84, is justified given the company’s performance and future prospects. The time horizon is medium-term (12-18 months), anticipating continued growth and operational improvements.