⚡ Flash Summary

The National Silk & Rayon Mills Limited reported a solid year in 2025, marked by a 14% increase in net turnover to Rs. 2,451.39 million. Profit after taxation also saw a significant rise, reaching Rs. 83.40 million compared to Rs. 66.30 million in the previous year. The company’s strong performance is attributed to operational excellence, product diversification, and effective cost management. Despite this, the board has not recommended a dividend for 2025, citing liquidity concerns and the high-interest rate environment.

📌 Key Takeaways

• 📈 Net turnover increased by 14% to Rs. 2,451.39 million in 2025 from Rs. 2,154.20 million in 2024.
• ✅ Profit after taxation surged to Rs. 83.40 million, a notable increase from Rs. 66.30 million in the previous year.
• 😞 No dividend was recommended for the year ended June 30, 2025, due to liquidity concerns and high interest rates.
• 👍 Gross profit increased to Rs. 190.50 million in 2025 compared to Rs. 155.61 million in 2024.
• ✔️ Earning per share (EPS) improved to Rs. 5.36 in 2025, up from Rs. 4.26 in 2024.
• ⚠️ Selling, administrative, and operating expenses increased to Rs. 88.12 million from Rs. 67.63 million yoy
• 🏢 The company made contributions of Rs. 469.13 million to the National Exchequer, up from Rs. 436.48 million last year.
• 🤝 The company emphasizes strong relationships with suppliers, customers, and business partners.
• 🔒 The company remains committed to sustainable growth, focusing on operational efficiency and cost reduction.
• 🏦 The company’s short-term borrowings are primarily from National Bank of Pakistan.
• 🚫 The company has not constituted a separate Nomination Committee or Risk Management Committee.
• ✔️ Riaz Ahmad and Company, Chartered Accountants, issued a clean audit report for the financial year.
• ♀️ The board consists of 5 male and 2 female directors.
• 🌱 The company is compliant with corporate social responsibility, contributing to society and welfare.
• ☑️ The directors confirm adequate internal financial controls have been implemented.

🎯 Investment Thesis

A HOLD rating is appropriate, as the company’s strong operational results are counterbalanced by the liquidity concerns suggested by the absence of a dividend. The improved EPS supports potential upside, but a re-evaluation will be necessary once the company’s dividend policy and liquidity situation are clearer. A potential price target of Rs. 85, reflecting a conservative multiple on earnings, seems appropriate.