⚡ Flash Summary
Al-Khair Gadoon Limited reported financial results for the quarter ended September 30, 2025. The company experienced a decrease in sales, leading to an operating loss. There are no cash dividends, bonus issues, or rights shares recommended by the board, which means they have not distributed any cash or stock to shareholders. The company is facing significant financial challenges, as evidenced by the substantial loss for the period.
📌 Key Takeaways
- 📉 Sales decreased to Rs 277.79 million from Rs 282.79 million YoY.
- ⛔ No cash dividend declared for the quarter ended September 30, 2025.
- 🚫 No bonus issue recommended by the board.
- ❌ No right shares being offered.
- 📉 Gross profit declined to Rs 31.08 million from Rs 34.20 million YoY.
- 📉 Operating profit decreased to Rs 3.80 million from Rs 13.66 million YoY.
- 📉 Finance costs were Rs 10.59 million.
- 🔻 Loss before taxation was Rs 6.74 million vs a profit of Rs 3.40 million in 2024.
- 🔻 Net loss for the period was Rs 10.21 million compared to a profit of Rs 0.133 million in 2024.
- 📉 Loss per share (basic and diluted) is Rs (1.02) vs Rs (0.01) in 2024.
- 💰 Cash from operations is positive at Rs 30.73 million, a significant drop compared to the previous year.
- 💸 Cash and bank balances decreased to Rs 24.99 million from Rs 32.11 million.
- ⚠️ Short term borrowings stand at Rs 331.67 million.
- 🔻 Shareholder equity decreased to Rs 331.87 million from Rs 342.09 million since July 1, 2025
🎯 Investment Thesis
A SELL recommendation is warranted. The company’s financial performance is weak, with declining revenues, increasing losses, and no shareholder distributions. The high level of short-term borrowings and decreasing cash balance pose significant risks. Without a clear plan for turnaround, the stock is likely to underperform.
Disclaimer: AI-generated analysis. Not financial advice.