⚡ Flash Summary

Shifa International Hospitals Limited (SIHL) reported a strong financial performance for the year ended June 30, 2025. Revenue increased significantly, driving a substantial rise in profit and earnings per share. The company is focusing on strategic priorities including financial sustainability, clinical excellence, and patient safety. These efforts appear to be translating into improved financial results.

📌 Key Takeaways

• 📈 Revenue – Net increased to Rs 27,968 million in FY 2024-25 from Rs 23,564 million in FY 2023-24.
• 💰 Profit for the year surged to Rs 2,329 million in FY 2024-25, compared to Rs 1,362 million in the previous year.
• ⭐ Earnings per share (EPS) rose to Rs 36.84 in FY 2024-25 from Rs 21.55 in FY 2023-24.
• 🏥 Operating costs increased to Rs (23,738) million, up from Rs (20,945) million.
• 💸 Finance costs decreased to Rs (354) million, down from Rs (441) million.
• 🧾 Total Assets increased to Rs 21,431 million from Rs 18,287 million.
• 🏦 Equity increased to Rs 14,307 million from Rs 11,916 million.
• 💪 Net cash generated from operating activities significantly increased to Rs 4,307 million from Rs 1,899 million.
• 📉 Net cash used in investing activities increased to Rs (2,766) million from Rs (795) million.
• ⬇️ Net cash used in financing activities decreased to Rs (450) million from Rs (1,165) million.
• 💵 Cash and cash equivalents at the end of the year increased to Rs 3,514 million from Rs 2,132 million.
• 🧾 Current ratio improved to 1.4 from 1.1.
• 📉 Debt to equity ratio decreased to 11.89 from 14.86.
• ✔️ For the three months ended Sep 30, 2025, revenue increased to Rs 7,615 million from Rs 7,061 million in 2024.
• ✔️ EPS for the three months ended Sep 30, 2025 increased to Rs 11.76 from Rs 9.95 in 2024.

🎯 Investment Thesis

BUY. SIHL has demonstrated substantial improvements in revenue, profitability, and cash flow. Strategic focus on financial sustainability and clinical excellence positions the company for continued growth. The increased EPS and overall financial strength warrant a buy recommendation. Based on projected earnings growth and sector multiples, a price target of PKR 45 with a time horizon of 18 months appears reasonable.