⚡ Flash Summary

Gatron Industries reported a challenging year, with a significant decrease in sales and a substantial loss for the year ended June 30, 2025. The company’s revenue declined by approximately 22.6% compared to the previous year, leading to a notable operating loss. Increased finance costs further exacerbated the financial strain. The company reported a loss per share of (18.13) Rupees, a stark contrast to the (2.36) Rupees loss per share in the prior year. Despite the losses, the board did not recommend any cash dividend, bonus shares, or right shares.

📌 Key Takeaways

• 📉 Sales plummeted to PKR 26,328.04 million, a 22.6% decrease from PKR 34,013.58 million in 2024.
• ⚠️ The company swung from an operating profit of PKR 1,392.50 million in 2024 to an operating loss of PKR (101.45) million in 2025.
• 💰 Finance costs increased to PKR 1,539.27 million, compared to PKR 1,494.59 million in the previous year.
• ❌ Loss before levies and income tax amounted to PKR (1,640.72) million, a significant downturn from a loss of PKR (93.55) million in 2024.
• 🧾 The company reported a loss for the year of PKR (1,971.12) million, sharply down from a loss of PKR (204.36) million in 2024.
• 📉 Loss per share (basic and diluted) was PKR (18.13), a considerable decline from PKR (2.36) in the previous year.
• 🚫 No cash dividend was recommended for the year ended June 30, 2025.
• 🚫 No bonus shares were recommended for the year ended June 30, 2025.
• 🚫 No right shares were recommended for the year ended June 30, 2025.
• 🏢 Total assets decreased slightly from PKR 34,588.89 million to PKR 34,236.88 million.
• 📉 Equity decreased from PKR 13,287.16 million to PKR 11,372.59 million.
• ⬆️ Long-term financing decreased from PKR 8,507.13 million to PKR 7,628.31 million.

🎯 Investment Thesis

Given the significant decline in financial performance, mounting losses, and negative valuation implications, a SELL recommendation is warranted. The company’s ability to recover in the short to medium term is uncertain. Therefore, a price target cannot be reliably established, but significant downside risk exists. Time horizon is SHORT_TERM as the risks are immediate and substantial.