⚡ Flash Summary

Zahidjee Textile Mills Limited announced its financial results for the year ended June 30, 2025. The company reported a significant increase in profit for the year, rising from PKR 635.07 million in 2024 to PKR 1,494.78 million in 2025. Earnings per share also increased substantially from PKR 3.32 to PKR 7.81. However, no cash dividend, bonus shares, or right shares were recommended by the board.

📌 Key Takeaways

• 🚀 Profit for the year increased significantly to PKR 1,494.78 million, a substantial rise from PKR 635.07 million in 2024.
• 📈 Earnings per share (EPS) jumped to PKR 7.81, compared to PKR 3.32 in the previous year.
• 💰 No cash dividend was declared for the year ended June 30, 2025.
• 📜 No bonus shares were announced.
• 🚫 No right shares were issued.
• 📊 Sales increased to PKR 40,608.06 million, up from PKR 37,741.82 million in 2024.
• ⚠️ Finance costs decreased from PKR 1,484.85 million to PKR 1,072.19 million.
• 💼 Total assets increased from PKR 29,340.62 million to PKR 36,962.14 million.
• liabilities decreased from PKR 21,723.93 million to PKR 16,012.15 million
• Net worth significantly increased to PKR 20,865.52 million, from PKR 16,012.15 million the previous year.
• Book value per share significantly increased from 83.65 in 2024 to 109 in 2025. This is derived from Net worth divided by the number of outstanding shares.
• ❌ The Share Transfer Books of the Company will be closed from October 19, 2025, to October 26, 2025.

🎯 Investment Thesis

Given the strong increase in profitability, coupled with improving balance sheet metrics, a BUY recommendation is warranted. The company’s growth trajectory and management’s ability to reduce finance costs are encouraging. Based on current growth rates and industry outlook, a price target of PKR 120 is set, with a time horizon of 12-18 months. This represents a significant upside from current levels, factoring in potential risks and sector-specific challenges.