⚡ Flash Summary

Yousaf Weaving Mills Limited (YOUW) reported a net loss of PKR 306.71 million for the year ended June 30, 2025, a significant increase from the PKR 49.21 million loss in the previous year. Sales increased to PKR 639.74 million from PKR 527.64 million. However, the company’s cost of sales surged to PKR 894.21 million, resulting in a gross loss of PKR 254.47 million. The substantial increase in losses raises concerns about the company’s operational efficiency and financial stability.

📌 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.