⚡ Flash Summary
SAIF Textile Mills Limited reported its financial results for the quarter ended September 30, 2025. The company experienced a significant drop in sales, decreasing from PKR 3,039.674 million in the same quarter last year to PKR 2,353.634 million. Consequently, profit after taxation declined substantially from PKR 10.862 million to PKR 5.817 million. This downturn in performance warrants a careful evaluation of the factors impacting the company’s revenue and profitability.
📌 Key Takeaways
- 📉 Sales plummeted by 22.55% year-over-year, from PKR 3,039.674 million to PKR 2,353.634 million.
- 📉 Gross profit decreased by 32.31% from PKR 547.280 million to PKR 370.465 million.
- ⚠️ Finance costs surged from PKR 401.245 million to PKR 222.273 million.
- 📉 Profit before taxation declined by 30.72%, from PKR 13.985 million to PKR 9.707 million.
- 📉 Profit after taxation shrank by 46.45%, from PKR 10.862 million to PKR 5.817 million.
- 💸 Earnings per share (EPS) decreased from PKR 0.41 to PKR 0.22.
- 💰 Cash generated from operating activities increased from PKR 400.561 million to PKR 632.530 million.
- ⚠️ Long-term financing decreased from PKR 967.393 million to PKR 1,095.245 million.
- 📊 Trade debts decreased from PKR 3,053.435 million to PKR 2,860.177 million.
- 💰 Cash and bank balances decreased from PKR 33.400 million to PKR 22.448 million.
🎯 Investment Thesis
Based on the current financial performance, a SELL recommendation is warranted. The substantial drop in sales and profitability raises concerns about the company’s short-term and medium-term outlook. Without significant operational improvements or a rebound in market conditions, the stock is likely to underperform. A price target of PKR 20 (a 10% discount from the current market price assuming it’s around PKR 22) seems reasonable, with a time horizon of 6-12 months, pending improvements.
Disclaimer: AI-generated analysis. Not financial advice.