⚡ Flash Summary

Bolan Castings Limited (BCL) faced significant headwinds in FY 2025 due to a sharp downturn in the agriculture sector and tractor industry in Pakistan. Production fell by 51% to 3,534 tons, and sales declined by 46% to 3,716 tons. Revenue decreased by 49% to Rs. 1,712.642 million. The company managed to contain its pre-tax loss to Rs. 0.555 million through cost-control measures and local material substitution. The potential Punjab Government’s subsidized tractor scheme for FY 2026 could provide recovery opportunities.

📌 Key Takeaways

• 📉 Pakistan’s economy showed gradual recovery, but the agriculture sector underperformed.
• 🚜 Tractor industry declined by 36.4% due to liquidity shortages and weak farm economics.
• 🏭 Production fell by 51% to 3,534 tons (from 7,228 tons).
• 📉 Sales declined by 46% to 3,716 tons (from 6,852 tons).
• 💰 Revenue decreased by 49% to Rs. 1,712.642 million.
• ✅ Pre-tax loss was contained to Rs. 0.555 million through cost control.
• 🚜 Punjab Government’s subsidized tractor scheme may boost sector demand in FY 2026.
• 🌍 GDP growth was 2.68%, with per capita income at US$1,824.
• 🔩 The company produces 13,200 tons per year of castings in grey and ductile iron.

🎯 Investment Thesis

Given the weak performance and challenging environment, a SELL recommendation is warranted. While the potential Punjab Government’s subsidy scheme offers some hope, the near-term outlook remains uncertain. A potential price target is not determined pending the evidence of an impact from the tractor subsidy.