⚡ Flash Summary
Kohat Textile Mills Limited held a corporate briefing session for the year ended June 30, 2025. The company’s revenue increased from Rs. 7,964 million in 2024 to Rs. 8,253 million in 2025. The company has installed a 3MW solar energy project enhancing its total solar capacity to 5.1 MW, to meet the factory’s energy requirements and ensure cost efficiency. The company’s equity has increased from Rs. 3,910 million to Rs. 4,607 million.
📌 Key Takeaways
- Established in 1967 and began production in 1969 with 12,480 spindles. 🏭
- Balance sheet footing of Rs.2.8 million at inception. 💰
- Revenue in 1970 was Rs.9.2 million. 📈
- Profit in 1970 was Rs.0.8 million. 🥳
- Listed on Pakistan Stock Exchange in 1970. 🇵🇰
- Entered into exports in 1971. 🚢
- Installed a new 3MW solar energy project, bringing total capacity to 5.1MW. ☀️
- Sufficient energy to meet factory requirements. ⚡
- Current capacity of 46,908 spindles. 🧵
- Current balance sheet footing of Rs.10 billion. 🏦
- Revenue increased to Rs. 8,253 million in 2025 from Rs. 7,964 million in 2024. 💸
- Gross profit decreased to Rs. 1,204 million in 2025 from Rs. 1,220 million in 2024. 📉
- Operating profit increased to Rs. 927 million in 2025 from Rs. 924 million in 2024. 📊
- Equity increased to Rs. 4,607 million in 2025 from Rs. 3,910 million in 2024. 🏦
- Statement of Financial Position increased to Rs. 10,102 million in 2025 from Rs. 8,315 million in 2024. 🧾
🎯 Investment Thesis
HOLD. While the company shows growth in revenue and equity, its profitability is not significantly improved, with gross profits decreasing slightly. The improved EPS and market value per share are positive indicators, but the increased debt-to-equity ratio suggests increased financial risk. The company’s strategic investments in solar energy and BMR may yield better results in the long term, but for now, a HOLD recommendation is appropriate.
Disclaimer: AI-generated analysis. Not financial advice.