⚡ Flash Summary

Haji Mohammad Ismail Mills Limited reported a loss after taxation of PKR (1,284,433) for the quarter ended September 30, 2025, compared to a loss of PKR (1,257,185) for the same period last year. This represents a slight increase in losses. The loss per share (basic and diluted) also increased from PKR (0.10) to PKR (0.11). The company’s operating loss was PKR (1,297,289), while other income amounted to PKR 12,856.

📌 Key Takeaways

• 🔴 Loss after taxation increased slightly to PKR (1,284,433) in Q1 2025 from PKR (1,257,185) in Q1 2024.
• 📉 Loss per share (basic and diluted) worsened to PKR (0.11) from PKR (0.10).
• ⚠️ Operating expenses remained high at PKR (1,297,289).
• 💰 Other income increased slightly to PKR 12,856 from PKR 12,122.
• 🏦 Cash and bank balances decreased to PKR 2,487,228 from PKR 3,540,846 in June 2025.
• 💸 Total assets increased to PKR 6,756,144 from PKR 5,744,465 in June 2025.
• 📉 Reserves decreased to PKR (121,515,546) from PKR (122,218,190) in June 2025.
• liabilities increased 6,664,516 from 6,353,360.
• 👍 Investment in available for sale increased to 2,395,050 from 332,325 in June 2025.
• ✅ Advance tax – net of provision increased to PKR 957,543 from 954,971 in June 2025.
• ✅ Other receivables remained constant at PKR 866,323.
• 🔻 Net cash used in operating activities worsened to PKR (1,053,617) from PKR (1,046,673).
• 💼 Authorized capital remains at 120,000,000 ordinary shares.

🎯 Investment Thesis

SELL. The company’s consistent losses, negative cash flows, and increasing financial strain suggest a high-risk investment. The current financial performance does not justify a BUY or HOLD recommendation. Price target: Significantly below current levels, reflecting the distressed nature of the business. Time horizon: Short to medium term (6-12 months), to reflect the potential for further deterioration in financial performance.