📉 JATM: SELL Signal (7/10) – Financial Results for the Quarter Ended 30-09-2025

📌 Key Takeaways

• 📉 Net loss for the quarter ended September 30, 2025, was PKR 7.18 million, an improvement from a PKR 30.60 million loss in the same period last year.
• 📈 Sales surged to PKR 487.19 million, a substantial increase from PKR 139.49 million year-over-year.
• 🏭 Cost of sales also increased significantly to PKR 484.62 million from PKR 166.27 million year-over-year.
• Gross profit stood at PKR 2.57 million compared to a gross loss of PKR 26.78 million in the corresponding quarter of the previous year.
• 💸 Operating expenses increased to PKR 5.54 million compared to PKR 4.12 million in the same quarter last year.
• 💰 Other operating income decreased to PKR 0.65 million from PKR 1.16 million year-over-year.
• 🏛️ The company reported a loss before levy and taxation of PKR 2.32 million, compared to a loss of PKR 29.74 million in the same quarter last year.
• 🧾 Levy was PKR 6.09 million compared to PKR 1.74 million in the prior year quarter.
• ✔️ Loss per share (basic) improved to PKR (0.57) from PKR (2.43).
• 🚫 No cash dividend, bonus shares, or right shares were recommended by the board.
• ⚠️ Accumulated loss increased to PKR 143.07 million as of September 30, 2025.

🎯 Investment Thesis

Based on the current financial results, a SELL recommendation is appropriate. Although revenue increased significantly, the company is still operating at a loss and has substantial accumulated losses. Until profitability improves and the company strengthens its balance sheet, the stock is considered a high-risk investment. There are no dividend payments and shareholder equity is weak.