⚡ Flash Summary
Dandot Cement Company Limited reported financial results for the year ended June 30, 2025. The company experienced a significant loss after taxation of PKR 153.14 million, a stark contrast to the profit of PKR 20.43 million in the prior year. Net sales increased substantially to PKR 6,344.18 million from PKR 2,456.36 million. However, increased finance costs and other operating expenses contributed to the overall loss. The company did not declare any cash dividend, bonus issue, or right shares for the year.
Signal: SELL 📉
Strength: 8/10
Sentiment: NEGATIVE
Time Horizon: MEDIUM_TERM
📌 Key Takeaways
- ❌ Dandot Cement reported a loss after taxation of PKR 153.14 million for FY2025, compared to a profit of PKR 20.43 million in FY2024.
- 📈 Net sales increased significantly to PKR 6,344.18 million from PKR 2,456.36 million, indicating strong revenue growth.
- 💸 Finance costs surged to PKR 652.16 million from PKR 392.91 million, heavily impacting profitability.
- 📉 Basic earnings per share (EPS) turned negative, with a loss of PKR 0.48 per share compared to earnings of PKR 0.08 per share in the previous year.
- 💰 No cash dividend was declared for the year ended June 30, 2025.
- 🚫 No bonus issue or right shares were recommended by the Board of Directors.
- 📊 Operating profit increased to PKR 519.27 million from PKR 122.23 million.
- ⚠️ Other operating expenses resulted in an expense of PKR 16.74 million, compared to an income of PKR 3.06 million in the previous year.
- 🏦 Long-term financing from banking companies decreased slightly to PKR 2,711.89 million from PKR 2,811.73 million.
- 🧾 Trade and other payables decreased to PKR 1,377.37 million from PKR 1,667.37 million.
- 📉 Total comprehensive loss for the year was PKR 153.14 million, contrasting with a comprehensive income of PKR 1,083.43 million in the prior year.
- 🚧 Capital work in progress saw a slight decrease, reported at PKR 10.46 million versus PKR 10.54 million in the previous year.
- 🏦 Cash and bank balances increased significantly to PKR 170.60 million from PKR 21.72 million.
- 📉 Accumulated losses increased to PKR 5,724.00 million from PKR 5,669.65 million.
🎯 Investment Thesis
Based on the reported loss, increased finance costs, and negative EPS, a SELL recommendation is warranted for Dandot Cement. The company’s high debt burden and operational inefficiencies raise concerns about its ability to sustain profitability. While net sales have increased, the overall financial performance does not justify a BUY or HOLD rating. Price Target: PKR 5.00. Time Horizon: Medium Term.
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Disclaimer: AI-generated analysis. Not financial advice.
