⚡ Flash Summary

Sitara Chemical Industries Limited (SCIL) reported revenue of PKR 32.53 billion for FY 2024-25, a 4.56% increase from the previous year. Net profit rose significantly by 60.42% to PKR 939 million, resulting in earnings per share of PKR 43.83. The company’s strategic expansion of its Coal Fired Power Plant (CFPP) aims to provide reliable and cost-efficient power. However, challenges such as increasing natural gas prices and PKR depreciation remain concerns for the future.

📌 Key Takeaways

• ✅ Revenue increased by 4.56% to PKR 32.53 billion in FY25.
• 💰 Net Profit surged by 60.42% to PKR 939 million.
• 📈 Earnings per share (EPS) rose to PKR 43.83.
• 🏭 Gross Profit increased by 14.22% to PKR 5.619 billion.
• ⚡ EBITDA increased by 9.38%.
• 🏦 Total Assets increased by 17.27%.
• ✅ Non-Current Assets increased 27.02%.
• 🏭 Caustic Soda production was 118,085 tons.
• 🏭 Soap Noodles Manufacturing Plant capacity is 35,000 M. Ton per year.
• ⚡ VIS Credit Rating reaffirmed SCIL’s ratings at A+ (Long-Term) and A-2 (Short-Term).
• 🌱 Company is Shariah Compliant certified by SECP since March 14, 2019.
• 🏭 Coal Fired Power Plant (CFPP) expansion of 50 MW is in commissioning phase.
• ⚠️ Average inflation dropped to 4.7% (Jul-Apr FY 2025) from 26.0% last year.
• ⚠️ SBP reduced the policy rate to 11% from 20.5% in June 2024.
• 🏭 Textile segment has installed capacity of 28,512 spindles.

🎯 Investment Thesis

Based on the reported financial performance, Sitara Chemical is a HOLD. The company demonstrates robust growth and profitability, but the risk factors concerning raw material prices and currency depreciation warrants caution. While the commissioning of the power plant is a positive catalyst, further clarity is needed on operational efficiency post-commissioning. The current price target range is PKR 495-510.