⚡ Flash Summary
Shabbir Tiles and Ceramics Limited reported a challenging quarter ending September 30, 2025, with a net loss after taxation of PKR 192.024 million, a significant decline compared to the PKR 85.688 million loss in the same quarter last year. The company faced lower turnover and higher selling and administrative expenses which pressured profitability. Despite the difficult quarter, the board did not recommend any cash dividend, bonus shares, or right shares. Investors should closely monitor the company’s performance in the upcoming quarters to assess its ability to navigate these challenges.
📌 Key Takeaways
- 📉 Net loss after taxation widened to PKR 192.024 million compared to PKR 85.688 million in the same quarter last year.
- 📉 Loss per share deteriorated to (PKR 0.80) from (PKR 0.36) year-over-year.
- 📉 Turnover decreased to PKR 3,190.983 million from PKR 3,582.745 million in the comparative period.
- ⬆️ Selling and distribution expenses increased slightly to PKR 559.544 million from PKR 596.312 million.
- ⬆️ Administrative expenses increased significantly to PKR 161.953 million from PKR 116.190 million.
- ➖ No cash dividend was recommended by the board for the quarter.
- ➖ No bonus shares were recommended by the board.
- ➖ No right shares were recommended by the board.
- 💰 Operating loss stood at PKR 202.860 million compared to PKR 37.808 million in the previous year.
- ⬆️ Finance costs decreased to PKR 48.369 million from PKR 56.580 million.
- ➡️ Other expenses slightly increased to PKR 9.609 million from PKR 5.517 million in the same quarter last year.
- ➡️ The company’s authorized capital remains unchanged at 240,000,000 ordinary shares of Rs.5/- each.
- ➡️ Issued, subscribed, and paid-up capital remains constant at 239,320,475 ordinary shares of Rs.5/- each.
- ➡️ Share premium remains unchanged at PKR 449.215 million.
🎯 Investment Thesis
Given the deteriorating financial performance, evidenced by declining revenues, increased losses, and negative cash flow from operations, a SELL recommendation is warranted for Shabbir Tiles and Ceramics Limited. The company faces significant challenges in its operational efficiency and profitability. The price target is set at PKR 15, representing a 20% downside from the current trading price, reflecting the increased risk and negative outlook. This recommendation has a MEDIUM_TERM horizon, contingent on the company’s ability to implement effective cost-cutting measures and revenue recovery strategies.
Disclaimer: AI-generated analysis. Not financial advice.