⚡ Flash Summary

Sapphire Fibres Limited (SFL) reported a positive fiscal year 2025 with increased sales and net profit. Total sales reached Rs. 50,562 million, up 6.6% from the previous year. The company invested significantly in various divisions, including Rs. 2,626 million in the Spinning Division for solar PV systems and machinery. The company is optimistic about future growth, citing a positive economic trajectory for Pakistan and a strategic focus on innovation and operational efficiency.

📌 Key Takeaways

• ⬆️ Sales increased by 6.6% to Rs. 50,562 million.
• ⬆️ Net Profit increased significantly by 305.5%.
• ⬇️ Current Ratio decreased by 22.4%.
• 💰 Dividend payout maintained at 100%.
• ⬆️ Return on Equity increased by 17.2%.
• ⬆️ Break-up Value increased by 46.5%.
• 🏭 Investment of Rs. 2,626 million in the Spinning Division.
• ☀️ Investment in a 6.5 MW On-Grid Solar-PV System.
• 👕 Entered the Denim Apparel segment with an investment of Rs. 672 million.
• 🧶 Investment of Rs. 168 million in the Knits Division to add cheaper sources of utilities.
• 🌍 Total Assets increased from Rs. 56,276 million to Rs. 83,669 million.
• Equity of parent shareholders increased to Rs. 84,697 million from Rs. 48,401 million.

🎯 Investment Thesis

SFL presents a compelling investment opportunity, driven by strong financial performance, strategic investments, and a positive outlook for the Pakistani economy. The company’s commitment to innovation and operational efficiency should support sustained growth and profitability. I assign a BUY rating with a price target of PKR 450, based on an estimated 10x FY26 earnings. The time horizon is MEDIUM_TERM (12-18 months).