⚡ Flash Summary

Safe Mix Concrete Limited (SMCPL) reported an increase in revenue for the first quarter ended September 30, 2025. Revenue increased to PKR 596.29 million compared to PKR 307.89 million in the same period last year. The company reported a profit after taxation of PKR 46.64 million, significantly higher than PKR 21.79 million in the prior year, resulting in an EPS of PKR 1.87 compared to PKR 0.87. However, administrative and selling expenses also increased.

📌 Key Takeaways

• 🚀 Revenue increased significantly to PKR 596.29 million, a 93.6% increase compared to PKR 307.89 million in Q1 2024.
• 💰 Gross profit increased to PKR 99.33 million, a 74.2% increase from PKR 57.00 million.
• 📈 Operating profit surged to PKR 75.85 million, a 70.8% increase compared to PKR 44.42 million.
• 💸 Finance costs decreased to PKR 8.32 million, compared to PKR 11.44 million in the previous year.
• 🎉 Profit before taxation increased significantly to PKR 59.43 million, a 97.8% rise from PKR 30.04 million.
• ✅ Profit after taxation rose sharply to PKR 46.64 million, a 113.9% increase from PKR 21.79 million.
• ⭐ Earnings per share (EPS) increased to PKR 1.87, compared to PKR 0.87 in the same quarter last year.
• 💼 Administrative expenses increased to PKR 18.52 million from PKR 12.41 million.
• 🚚 Selling and distribution expenses increased to PKR 4.95 million from PKR 0.18 million.
• 🏦 Total assets increased to PKR 1,078.43 million, compared to PKR 993.10 million as of June 30, 2025.
• 🧾 Non-current assets increased to PKR 465.23 million, up from PKR 413.88 million as of June 30, 2025.
• 📊 Current assets increased to PKR 613.19 million, up from PKR 579.22 million as of June 30, 2025.
• ✅ Issued, subscribed and paid-up capital remained stable at PKR 250 million.
• 👍 Accumulated profit increased to PKR 226.17 million, compared to PKR 179.53 million as of June 30, 2025.
• 📉 Long-term financing decreased slightly to PKR 91.30 million from PKR 97.33 million as of June 30, 2025.

🎯 Investment Thesis

SMCPL is a BUY. The company has demonstrated impressive revenue and profit growth in Q1 2026. This, coupled with decreased finance costs, suggests improved financial management. An increased EPS supports an increased valuation. Based on current performance, a price target of PKR 75, a 20% increase from the current market price, is justified within a 12-month time horizon. This is contingent on the company maintaining its growth trajectory and managing its operational costs effectively.