⚡ Flash Summary

Gulshan Spinning Mills Limited reported a net loss of PKR 3.441 million for the quarter ended September 30, 2025, a significant increase from the loss of PKR 97,296 in the same quarter last year. The company’s financials indicate ongoing challenges as it navigates a Scheme of Arrangement to settle financial liabilities. With no sales reported for the period, the company’s ability to generate revenue remains a critical concern. The focus is now on implementing the Scheme of Arrangement and resolving pending litigation to restructure its operations and improve its financial position.

📌 Key Takeaways

• ⚠️ Net loss significantly increased to PKR 3.441 million compared to PKR 97,296 last year.
• 📉 No sales reported for the quarter ended September 30, 2025.
• 💼 Operating loss stood at PKR 3.440 million, indicating operational inefficiencies.
• 🏛️ Company is operating under a Scheme of Arrangement sanctioned by the Sindh High Court.
• 🏦 The Scheme aims to settle financial liabilities through the sale of charged assets.
• ⚖️ Pending litigation with financial institutions is expected to be withdrawn under the Scheme.
• 📉 Value of assets has depreciated considerably due to cessation of operations.
• 💰 Cash flow from operations is negative, at PKR (3.811) million.
• 💸 Negative earnings per share (EPS) of PKR (0.15).
• 🧾 Administrative expenses were PKR 3.445 million.
• 💸 Cash and bank balances decreased slightly from PKR 16.275 million to PKR 16.145 million.
• liabilities of PKR 2.85 billion payable to banking companies under scheme of arrangement.

🎯 Investment Thesis

Given the current financial state and operational challenges, a SELL recommendation is warranted. The company’s lack of revenue, increasing losses, and dependence on a Scheme of Arrangement make it a high-risk investment with limited potential for near-term recovery. The focus on asset disposal rather than operational turnaround further reduces the attractiveness of the stock. There is no calculation as to price target.