⚡ Flash Summary

S.S. Oil Mills Limited’s financial results for the year ended June 30, 2025, show a significant turnaround with a net profit of PKR 250.63 million compared to a net loss of PKR 123 million in the previous year. This improvement is primarily driven by a substantial increase in net sales, which surged from PKR 4.52 billion to PKR 7.83 billion. While financial costs remain high at PKR 176.73 million, they have decreased from the previous year’s PKR 278.12 million. The company’s Earnings per Share (EPS) has also improved dramatically, from a negative PKR 21.74 to a positive PKR 44.29.

📌 Key Takeaways

• 🚀 Net sales increased by 73.3% YoY, from PKR 4,516.35 million to PKR 7,828.87 million.
• 💰 Net profit turned positive, reaching PKR 250.63 million compared to a net loss of PKR 122.99 million in the previous year.
• 📈 Earnings per Share (EPS) improved to PKR 44.29 from a loss per share of PKR 21.74.
• 📉 Financial costs decreased from PKR 278.12 million to PKR 176.73 million.
• 📊 Gross profit increased significantly from PKR 232.76 million to PKR 579.49 million.
• ✅ Operating profit improved from PKR 177.28 million to PKR 494.39 million.
• ⚠️ Short-term borrowings decreased from PKR 1,228.12 million to PKR 996.71 million.
• 🏦 Cash and bank balances increased from PKR 51.80 million to PKR 220.43 million.
• 📜 Trade debtors increased from PKR 783.79 million to PKR 977.63 million, indicating potential credit risk.
• inventories decreased from PKR 1,315.38 million to PKR 1,048.18 million.

🎯 Investment Thesis

Based on the strong financial performance and positive turnaround, a BUY recommendation is justified. The company has demonstrated improved revenue growth, profitability, and operational efficiency. The decrease in financial costs and the increase in cash reserves are positive indicators. A price target of PKR 65 per share is set, based on a projected EPS of PKR 50 and a P/E ratio of 1.3, with a time horizon of 12-18 months. This assumes the company can sustain its improved performance and effectively manage its risks.