⚡ Flash Summary

Sitara Chemical Industries Limited (SITC) reported strong financial results for the year ended June 30, 2025. Revenue increased by 4.56% to Rs. 32,530 million, while net profit soared by 60.42% to Rs. 939 million. Earnings per share also increased by 60.42% to Rs. 43.83. The company’s expansion of its Coal Fired Power Plant is underway, which will contribute to cost-efficient operations.

📌 Key Takeaways

• 📈 Revenue increased by 4.56% to Rs. 32,530 million in FY25 from Rs. 31,111.88 million in FY24.
• 💰 Gross Profit increased by 14.22% to Rs. 5,620 million.
• 🚀 Net Profit surged by 60.42% to Rs. 939 million.
• ⭐ Earnings per Share (EPS) increased by 60.42% to Rs. 43.83.
• 📊 EBITDA increased by 9.38% to Rs. 5,295 million.
• 💹 Gross Profit margin improved to 17.27% from 15.81% in the previous year.
• ✅ Total Assets increased by 17.27% to Rs. 47,509 million.
• 🛡️ Shareholders’ Equity increased by 4.44% to Rs. 18,866 million.
• 💼 Market Capitalization increased significantly by 43.24% to Rs. 10,625 million.
• 💸 Cash Dividend per Share declared at Rs. 11.00.
• ⚡️ Expansion of Coal Fired Power Plant (CFPP) is in the commissioning phase with expected operational benefits.
• 📉 Average inflation dropped to 4.7% from 26.0% last year.
• ⚠️ Key challenges include potential increases in natural gas/RLNG and coal prices, PKR depreciation, and weak demand.
• A+ (Long-Term) and A-2 (Short-Term) credit ratings reaffirmed by VIS Credit Rating Company Ltd.

🎯 Investment Thesis

BUY. Sitara Chemical Industries Limited presents a compelling investment opportunity due to its strong financial performance, expansion plans, and improving economic conditions. The company’s focus on operational efficiency and strategic expansions will drive future growth. The company’s reaffirmation of its A+ credit rating is positive. A price target of PKR 550.00 with a medium-term horizon (12-18 months) is justified, based on continued earnings growth.