⚡ Flash Summary
Shaffi Chemical Industries Limited reported financial results for the quarter ended September 30, 2025. The company experienced a net loss of PKR 580.272 million, a stark contrast to the profit of PKR 766.236 million in the same quarter last year. Sales increased slightly to PKR 5.994 million from PKR 5.541 million in the prior year. The company did not declare any cash dividend, bonus shares, or right shares for the quarter.
📌 Key Takeaways
- 📉 Net loss of PKR 580.272 million compared to a profit of PKR 766.236 million in Q3 2024.
- ⬆️ Revenue increased to PKR 5.994 million, a rise from PKR 5.541 million in the prior year.
- ❌ No cash dividend declared.
- 🚫 No bonus shares announced.
- ❌ No right shares issued.
- ⚠️ Finance costs significantly increased from PKR 2,546 to PKR 1.471 million.
- 📉 Earnings per share (EPS) is negative at (0.05) compared to 0.06 in the same period last year.
- Gross Profit increased from PKR 1.228 million to PKR 1.374 million.
- Administrative expenses increased from PKR 389,841 to PKR 483,297.
- ❌ No other price-sensitive information was disclosed.
- Non-current assets decreased slightly from PKR 38.784 million to PKR 38.689 million.
- Current assets increased significantly from PKR 21.929 million to PKR 5.703 million.
🎯 Investment Thesis
Based on the current financial results, a SELL recommendation is appropriate. The company’s shift to a loss-making position, coupled with increased finance costs and administrative expenses, indicates significant financial challenges. The price target is set at a 10% discount to the current share price, with a short-term horizon of 3-6 months, reflecting concerns about immediate financial performance.
Disclaimer: AI-generated analysis. Not financial advice.