📉 BUXL: SELL Signal (8/10) – Corporate Briefing Presentation

📌 Key Takeaways

• Established in 1933 in Hyderabad Daccan, Pakistan. 🇵🇰
• Started Karachi & Chittagong Factories in 1948. 🏭
• First Paint Factory of Pakistan. 🥇
• Became a Public Limited Company in 1985. 🏢
• One of only Two Listed Companies in the Paints Industry in Pakistan. 📊
• Net Sales decreased by 6% from 622,985 to 587,141 (Rupees in ‘000s). 📉
• Gross Profit increased by 4% from 107,323 to 111,884 (Rupees in ‘000s). 📈
• Gross Profit Margin improved from 17.23% to 19.06%. ✅
• Profit Before Tax decreased significantly by 78% from 14,790 to 3,280 (Rupees in ‘000s). ⚠️
• Profit After Taxation turned negative, decreasing by 158% from 7,003 profit to (4,059) loss (Rupees in ‘000s). 🔴
• EPS decreased dramatically by 158% from 4.86 to (2.82) (Rs.). 📉
• Major shareholders include Slotrapid Limited (37.64%) and Berger Paints Limited (19.00%). 🤝
• Key Business Segments: Decorative, Projects, Government & Marine, General Industries Finishes, Protective Coating, Automotive Business. 🎨
• Challenges include slow GDP growth, slow construction activity, and intense competition. 🚧

🎯 Investment Thesis

Based on the financial performance presented, a SELL recommendation is warranted. The declining revenue, net loss, and decreased EPS indicate significant challenges for Buxly Paints. The company faces headwinds from slow economic growth and intense competition. A price target is difficult to determine given the negative earnings. Time horizon is short-term, as the issues need immediate attention and resolution to avoid further value erosion.