BELA

⚡ Flash Summary

BELA Automotives Limited reported its unaudited financial results for the first quarter ended September 30, 2025. The company experienced no sales during the period due to the Income Tax Authorities freezing their accounts, which disrupted operations and customer relationships. The Board assessed overall performance as satisfactory despite hurdles from a pending court case and unavailability of funds. The company is facing litigation and adverse CIB reporting, hindering its ability to secure working capital.

📌 Key Takeaways

• ❌ Zero sales reported for the period ended September 30, 2025.
• ⚠️ Income Tax Authorities froze company’s accounts, impacting operations.
• ⚖️ Pending litigation in Sindh High Court affects company’s performance.
• 🏦 Adverse CIB reporting limits access to working capital.
• 📉 Accumulated loss of (108,990,989) Rupees as of September 30, 2025.
• 📉 Loss after taxation stood at (4,079,565) Rupees for the quarter.
• 💸 Finance costs amounted to (2,000,029) Rupees.
• 📉 Loss per share is (0.70) Rupees.
• 📉 Net cash used in operating activities is (634,878) Rupees.
• 👍 Public announcement of intention to acquire 50.02% shares is underway.
• ✔️ Settlement of long outstanding dispute with Habib Bank Limited (HBL).

🎯 Investment Thesis

SELL. Given the zero revenue, persistent losses, pending litigation, and operational disruptions, an investment in BELA Automotives Limited is highly speculative and carries significant risk. While the potential acquisition of shares might introduce some value, the current financial situation doesn’t warrant a positive outlook. There is no justification for a price target until operations stabilize and revenue is generated. A long-term turnaround strategy would be needed for a neutral investment outlook.

⚡ Flash Summary

Bela Automotives Limited’s annual report for the year ended June 30, 2025, reveals continued financial struggles. The company reports a gross loss and a net loss before tax. Despite settling a dispute with Habib Bank Limited and intentions to acquire new working capital, the auditor expresses an adverse opinion on the financial statements due to going concern issues and non-compliance with accounting standards. The company’s management aims to wipe out accumulated losses by June 2028, but significant challenges remain.

📌 Key Takeaways

• ❌ Bela Automotives reported a gross loss of PKR (4,682,063) for the year ended June 30, 2025.
• 📉 The company’s loss before tax was PKR (24,514,639).
• ⚠️ Accumulated losses carried forward to the balance sheet amounted to PKR (24,514,639).
• 📉 Earning per share (EPS) was negative at (4.23).
• ⚖️ A long-standing dispute with Habib Bank Limited (HBL) has been settled.
• 💼 The company intends to acquire 2,900,000 ordinary shares, representing 50.02% of total shares.
• 🏭 The plant has not been fully utilized due to lack of adequate working capital.
• 🎯 The company projects to wipe out accumulated losses by June 2028.
• 📜 Auditors have expressed a qualification regarding the company’s going concern assumption.
• 🚫 The company has not carried out an assessment of impairment for capital work in progress.
• 🏦 A loan was obtained from Universal Auto Engineering to repay an earlier loan from HBL.
• ✔️ The board has formed an audit committee and an HR & Remuneration Committee.
• 🔒 Share transfer books will remain closed from October 22, 2025, to October 28, 2025.
• 📊 Total number of employees as of June 30 includes 1 permanent and 3 contractual employees.
• 🤝 The board is responsible for setting the Company’s sustainability strategies.

🎯 Investment Thesis

Given the company’s continuous financial losses, the auditor’s adverse opinion, and ongoing concerns about its ability to operate as a going concern, a SELL recommendation is justified. There is no reasonable evidence to suggest a turnaround in the near term. The company faces substantial financial and operational hurdles, making investment highly speculative.

⚡ Flash Summary

Bela Automotives Limited’s annual report for the year ended June 30, 2025, reveals continued financial struggles. The company reports a gross loss and a net loss before tax. Despite settling a dispute with Habib Bank Limited and intentions to acquire new working capital, the auditor expresses an adverse opinion on the financial statements due to going concern issues and non-compliance with accounting standards. The company’s management aims to wipe out accumulated losses by June 2028, but significant challenges remain.

📌 Key Takeaways

• ❌ Bela Automotives reported a gross loss of PKR (4,682,063) for the year ended June 30, 2025.
• 📉 The company’s loss before tax was PKR (24,514,639).
• ⚠️ Accumulated losses carried forward to the balance sheet amounted to PKR (24,514,639).
• 📉 Earning per share (EPS) was negative at (4.23).
• ⚖️ A long-standing dispute with Habib Bank Limited (HBL) has been settled.
• 💼 The company intends to acquire 2,900,000 ordinary shares, representing 50.02% of total shares.
• 🏭 The plant has not been fully utilized due to lack of adequate working capital.
• 🎯 The company projects to wipe out accumulated losses by June 2028.
• 📜 Auditors have expressed a qualification regarding the company’s going concern assumption.
• 🚫 The company has not carried out an assessment of impairment for capital work in progress.
• 🏦 A loan was obtained from Universal Auto Engineering to repay an earlier loan from HBL.
• ✔️ The board has formed an audit committee and an HR & Remuneration Committee.
• 🔒 Share transfer books will remain closed from October 22, 2025, to October 28, 2025.
• 📊 Total number of employees as of June 30 includes 1 permanent and 3 contractual employees.
• 🤝 The board is responsible for setting the Company’s sustainability strategies.

🎯 Investment Thesis

Given the company’s continuous financial losses, the auditor’s adverse opinion, and ongoing concerns about its ability to operate as a going concern, a SELL recommendation is justified. There is no reasonable evidence to suggest a turnaround in the near term. The company faces substantial financial and operational hurdles, making investment highly speculative.