📉 LPGL: SELL Signal (8/10) – Financial Results for the Year Ended 2025-06-30

📌 Key Takeaways

• 📉 Revenue decreased by 51.3% YoY, from PKR 3,344.534 million to PKR 1,628.612 million.
• 📉 Gross profit decreased by 34.6% YoY, from PKR 417.893 million to PKR 273.317 million.
• 📉 Profit after taxation decreased significantly by 80.6% YoY, from PKR 81.519 million to PKR 15.822 million.
• 📉 Basic and diluted earnings per share (EPS) decreased by 80.6% YoY, from PKR 10.87 to PKR 2.11.
• ⚠️ Distribution costs decreased from PKR 64.178 million to PKR 50.547 million.
• ⚠️ Administrative expenses decreased from PKR 116.186 million to PKR 102.615 million.
• ⚠️ Finance costs decreased from PKR 90.796 million to PKR 73.428 million.
• ✅ The company did not announce any dividends, bonus shares, or right shares.
• ✅ Current liabilities increased from PKR 968.096 million to PKR 1,074.094 million.
• 📈 Surplus on revaluation of property, plant, and equipment increased by PKR 215.055 million.
• ✅ Total comprehensive income for the year increased from PKR 81.519 million to PKR 230.877 million due to revaluation surplus.
• 💰 Cash generated from operations decreased from PKR 123.849 million to PKR 133.202 million.
• 💸 Net cash generated from operating activities increased from PKR 985 thousand to PKR 1.944 million.
• 🏦 Cash and cash equivalents at the end of the year increased slightly from PKR 9.830 million to PKR 10.437 million.

🎯 Investment Thesis

Based on the significant decline in revenue, profitability, and EPS, a SELL recommendation is appropriate. The company’s financial performance raises concerns about its ability to sustain operations at previous levels. A price target of PKR 1.50 is set, with a short-term time horizon of 6 months, reflecting the potential for further decline if performance is not addressed.