⚡ Flash Summary
Shield Corporation Limited (SCL) reported financial results for the quarter ended September 30, 2025. The company experienced a slight decrease in sales, offset by increased cost of sales, resulting in a decrease in gross profit. SCL reported a loss for the period, whereas it recorded a profit for the same period last year. The Board of Directors did not recommend any cash dividend, bonus shares, or right shares.
📌 Key Takeaways
- 📉 Sales – net decreased slightly from 719.91 million to 717.67 million Rupees.
- 💰 Cost of sales increased from 552.66 million to 537.28 million Rupees.
- 📈 Gross profit increased from 167.25 million to 180.39 million Rupees.
- 📊 Selling and distribution expenses remained relatively stable around 158.3 million Rupees.
- 💸 Administrative and general expenses increased from 16.06 million to 17.71 million Rupees.
- 📉 Other operating income declined substantially from 7.88 million to 0.86 million Rupees.
- 📉 Finance costs decreased from 48.83 million to 20.73 million Rupees.
- ❌ Loss before income tax significantly increased from 46.69 million to 27.03 million Rupees.
- ⚠️ Minimum tax differential levy increased from 8.89 million to 9.20 million Rupees.
- 📉 Loss before income tax went from (55.59M) to (36.23M) Rupees.
- 📉 Loss for the period is (36.23M) Rupees.
- 📉 Loss per share – basic and diluted improved from (14.85) to (9.29) Rupees.
- ❌ No cash dividend was recommended by the Board of Directors.
- ❌ No bonus shares were recommended.
- ❌ No right shares were recommended.
🎯 Investment Thesis
Based on the analysis, a SELL recommendation is appropriate. The company’s financial performance indicates challenges in maintaining profitability and managing costs. The increased loss per share and negative earnings raise concerns about the company’s ability to generate sustainable returns. Given these factors, a conservative price target should be set, reflecting the company’s current financial difficulties.
Disclaimer: AI-generated analysis. Not financial advice.