📉 KOHE: SELL Signal (8/10) – Financial Results for the Quarter Ended September 30, 2025

📌 Key Takeaways

• 📉 Sales plummeted to PKR 798.47 million from PKR 1,462.57 million YoY.
• ⚠️ Cost of sales decreased to PKR 575.70 million from PKR 961.95 million YoY.
• 😔 Gross profit decreased to PKR 222.77 million from PKR 500.62 million YoY.
• 🏢 Administrative expenses decreased to PKR 70.50 million from PKR 88.13 million YoY.
• 😟 Operating profit decreased significantly to PKR 152.27 million from PKR 412.49 million YoY.
• 💰 Finance costs decreased substantially to PKR 15.19 million from PKR 110.73 million YoY.
• 📉 Profit before levy and taxation decreased to PKR 140.50 million from PKR 317.94 million YoY.
• 💸 Profit after tax decreased to PKR 139.51 million from PKR 313.73 million YoY.
• 📉 Earnings per share (EPS) decreased to PKR 0.82 from PKR 1.85 YoY.
• 🚫 No cash dividend was announced for the quarter.
• 📊 Total equity increased slightly to PKR 4,204.09 million from PKR 4,064.58 million since June 2025.
• 💸 Cash and bank balances decreased to PKR 26.05 million from PKR 76.56 million since June 2025.
• ⚠️ Short term finances decreased from PKR 1,050.50 million in June 2025 to PKR 437.21 million.
• ❌ No bonus or right shares were announced.

🎯 Investment Thesis

Given the significant decrease in sales and profitability, coupled with potential liquidity concerns, a SELL recommendation is warranted for Kohinoor Energy Limited. The company’s earnings have deteriorated significantly, making it a less attractive investment compared to its peers. A conservative price target of PKR 20 is set, based on a reduced P/E multiple reflecting the decreased EPS. This recommendation has a short-term time horizon (3-6 months), anticipating further negative news or lack of improvement in operational performance.