📉 RUPL: SELL Signal (7/10) – CBS Presentation attachment

📌 Key Takeaways

• 📉 Rupali Polyester Limited (RPL) reported a net loss of PKR 1,526.38 million for the year ended June 30, 2025.
• 📉 Sales plummeted to PKR 6,162.28 million, a decrease from PKR 10,485.06 million in the previous year.
• 💔 Gross loss of PKR 1,079.19 million compared to a gross profit of PKR 23.37 million in 2024.
• ⚠️ Finance costs remained high at PKR 448.48 million, although decreased from PKR 632.98 million in the previous year.
• 🏢 Administrative expenses totaled PKR 221.48 million, down slightly from PKR 230.81 million in 2024.
• ⛔️ Loss per share was PKR 44.80, compared to a loss per share of PKR 24.14 in the previous year.
• 🛡️ Anti-dumping duty imposed on Polyester Filament Yarn (PFY) from China could provide a more level playing field.
• ⚡ Concessional power tariff of Rs.22.98 per unit aims to reduce manufacturing costs.
• 📈 Total assets increased significantly from an initial capital outlay of Rs.150 million to Rs.12,015 million as of June 30, 2025.
• 🌍 Pakistan’s economy shows signs of stability, which may support future growth.
• ✅ Company emphasizes continuous efforts to regain sustainability despite facing difficult periods.

🎯 Investment Thesis

Given the significant losses, declining sales, and persistent financial challenges, a SELL recommendation is warranted for RUPL. While the imposition of anti-dumping duties and concessional power tariffs offer potential for improvement, the company’s current financial state is too precarious. A price target of PKR 5.00, representing a significant downside from the current trading levels, is appropriate. The time horizon for this recommendation is SHORT_TERM, as immediate action is needed to mitigate further losses.