📉 YOUW: SELL Signal (8/10) – Financial Results for the Year Ended June 30, 2025

📌 Key Takeaways

• 🚨 YOUW’s net loss dramatically increased to PKR 306.71 million in 2025 from PKR 49.21 million in 2024.
• 📈 Sales saw an increase, reaching PKR 639.74 million in 2025 compared to PKR 527.64 million in 2024.
• 📉 Cost of sales spiked to PKR 894.21 million, leading to a gross loss of PKR 254.47 million.
• ⚠️ Operating loss widened to PKR 294.73 million from PKR 38.03 million.
• 💸 Loss per share ballooned to PKR (2.26) from PKR (0.39).
• 💰 Net cash used in operating activities was PKR 28.73 million compared to cash generated of PKR -8.69 million in 2024.
• 🏦 Short-term borrowings decreased significantly to PKR 517.92 million from PKR 611.65 million.
• 📊 The company’s accumulated loss increased to PKR 1.85 billion.
• ❌ Total comprehensive loss for the year was PKR 310.12 million, a stark contrast to the income of PKR 197.72 million in the previous year.
• 📉 Negative experience adjustment on remeasurement of staff retirement of PKR -3.41 million.
• 💵 Loan from directors increased significantly to PKR 81.96 million vs PKR 34.18 million in 2024.

🎯 Investment Thesis

Based on the significant losses, deteriorating profitability, and weak financial position, a SELL recommendation is warranted for Yousaf Weaving Mills. The increasing losses and negative cash flow raise serious concerns about the company’s ability to sustain operations. A price target cannot be provided due to the fundamental issues, but it is likely to be substantially lower than the current market price. Time horizon: Short-term.