⚡ Flash Summary

Gulistan Textile Mills Limited reported a significant loss for the quarter ended September 30, 2025, with a net loss after taxation of PKR 13.652 million compared to a loss of PKR 2.891 million in the same quarter last year. The company’s loss from operations also widened considerably, reaching PKR 13.627 million compared to PKR 2.890 million year-over-year. No dividends, bonus shares, or right shares were recommended. The accumulated losses have further increased on the balance sheet, contributing to a substantial negative total equity position.

📌 Key Takeaways

• ❌ Net loss after taxation widened to PKR 13.652 million in Q1 2025 from PKR 2.891 million in Q1 2024.
• 📉 Loss from operations significantly increased to PKR 13.627 million from PKR 2.890 million year-over-year.
• 🚫 No cash dividend, bonus shares, or right shares were declared for the quarter.
• 💸 Administrative expenses increased from PKR 1.550 million to PKR 2.541 million.
• ⚠️ Other expenses surged to PKR 11.085 million from PKR 1.340 million.
• 📊 Basic and diluted loss per share increased to PKR 0.72 from PKR 0.15.
• 💰 Finance costs increased to PKR 25,137 from PKR 1,125.
• 📉 Accumulated losses have increased to PKR 9,640.604 million as of September 30, 2025.
• 📉 Total equity is significantly negative at PKR (8,420.620) million.
• 🏦 Significant liabilities, including PKR 5,640.188 million payable to banking companies.
• 💸 Trade and other payables are substantial at PKR 248.147 million.
• 💵 Cash and bank balances stood at PKR 26.034 million.
• 📉 Negative cash flow from operations of PKR (14.262) million for Q1 2025.
• 📉 Negative retained earnings impacting the overall financials

🎯 Investment Thesis

Given the substantial losses, negative equity, and negative cash flow from operations, a SELL recommendation is warranted. The company’s financial position is precarious, with limited prospects for improvement in the near term. There is no specified price target. Significant restructuring, cost-cutting measures, or capital injection would be needed to improve outlook, but there is no plan as of the time of this report. A SHORT_TERM time horizon is appropriate for this recommendation.