📉 MSCL: SELL Signal (7/10) – Financial Results for the Year Ended June 30, 2025

📌 Key Takeaways

• 📉 Revenue declined by 17.75% YoY, from 122.475 million to 100.747 million Rupees.
• ❌ Gross loss decreased from (17.213) million to (11.683) million Rupees.
• 🙁 Loss after income taxation improved from (23.342) million to (12.423) million Rupees.
• ⛔️ Loss per share improved from (0.75) to (0.40) Rupees.
• ⚠️ Total assets increased slightly from 890.061 million to 912.957 million Rupees.
• 👍 Cash and bank balances significantly increased from 3.430 million to 8.009 million Rupees.
• 👎 Stock-in-trade decreased significantly from 48.792 million to 14.450 million Rupees.
• ✔️ Total equity increased from 814.746 million to 844.882 million Rupees.
• ⬆️ Revaluation surplus on property, plant and equipment increased from 529.982 million to 568.022 million Rupees.
• 🔻 Accumulated losses increased from (105.512) million to (113.416) million Rupees.
• 💸 Net cash generated from operating activities was 16.582 million Rupees, compared to (0.559) million Rupees in the prior year.
• 💸 Net cash from investing activities was 6.416 million Rupees, compared to (2.936) million Rupees in the prior year.
• 💰 Cash and cash equivalents at the end of the year increased from 3.430 million to 23.009 million Rupees.

🎯 Investment Thesis

Based on the declining revenue, continued losses, and overall weak financial performance, a SELL recommendation is warranted. While there are positive signs such as increased cash balances, these are insufficient to offset the underlying challenges. A price target cannot be accurately provided without a full discounted cash flow or relative valuation analysis. The time horizon is MEDIUM_TERM (6-18 months) pending significant improvements in financial performance.