⚡ Flash Summary

BELA Automotives Limited reported its unaudited financial results for the first quarter ended September 30, 2025. The company experienced no sales during the period due to the Income Tax Authorities freezing their accounts, which disrupted operations and customer relationships. The Board assessed overall performance as satisfactory despite hurdles from a pending court case and unavailability of funds. The company is facing litigation and adverse CIB reporting, hindering its ability to secure working capital.

📌 Key Takeaways

• ❌ Zero sales reported for the period ended September 30, 2025.
• ⚠️ Income Tax Authorities froze company’s accounts, impacting operations.
• ⚖️ Pending litigation in Sindh High Court affects company’s performance.
• 🏦 Adverse CIB reporting limits access to working capital.
• 📉 Accumulated loss of (108,990,989) Rupees as of September 30, 2025.
• 📉 Loss after taxation stood at (4,079,565) Rupees for the quarter.
• 💸 Finance costs amounted to (2,000,029) Rupees.
• 📉 Loss per share is (0.70) Rupees.
• 📉 Net cash used in operating activities is (634,878) Rupees.
• 👍 Public announcement of intention to acquire 50.02% shares is underway.
• ✔️ Settlement of long outstanding dispute with Habib Bank Limited (HBL).

🎯 Investment Thesis

SELL. Given the zero revenue, persistent losses, pending litigation, and operational disruptions, an investment in BELA Automotives Limited is highly speculative and carries significant risk. While the potential acquisition of shares might introduce some value, the current financial situation doesn’t warrant a positive outlook. There is no justification for a price target until operations stabilize and revenue is generated. A long-term turnaround strategy would be needed for a neutral investment outlook.