SHCM

⚡ Flash Summary

Shadman Cotton Mills Limited (SHCM) has issued a statement on November 7, 2025, addressing the unusual movement in the company’s stock price and volume. The company states that they are unaware of any specific information or speculation that might be causing this activity. They affirm their commitment to complying with all legal and regulatory requirements. This announcement provides little insight into the underlying reasons for the stock movement and suggests a lack of specific information available to the company.

📌 Key Takeaways

• 📅 The announcement is dated November 7, 2025.
• 🤔 The company acknowledges ‘unusual movement’ in share price/volume.
• ℹ️ SHCM claims no knowledge of market speculation.
• 🚫 They state a lack of ‘material information’ driving price increase.
• ✅ SHCM confirms awareness of all legal/regulatory procedures.
• 📜 The announcement references a prior letter (PSX Gen-Gen-1993) from the exchange dated November 6, 2025, prompting this response.
• 🤝 The company assures continued compliance.
• 🏢 The communication is addressed to the Pakistan Stock Exchange Ltd.
• 👤 The document is signed by Muhammad Raheel Arif, Company Secretary.
• 📍 The company is located in Karachi, Pakistan.
• 🌐 The provided website is www.shadman.com.pk.
• 📞 Contact numbers are 92-56-3731270 and 3731271.
• 📧 The contact email is info@shadman.com.pk.

🎯 Investment Thesis

Given the lack of concrete information from the company regarding the unusual price movement, a HOLD recommendation is appropriate. It’s prudent to avoid making any investment decisions until there’s more clarity about the reasons behind the stock’s activity.

⚡ Flash Summary

Shadman Cotton Mills Ltd. held its 46th Annual General Meeting (AGM) on October 28, 2025. The meeting addressed standard business items, including the confirmation of minutes from the previous AGM held on November 27, 2024, and the approval of the audited financial statements for the year ended June 30, 2025. Mushtaq & Company, Chartered Accountants, were re-appointed as auditors for the upcoming fiscal year ending June 30, 2026. A resolution was passed to allow the company to lease or rent out vacant buildings to increase funds inflow, indicating a potential strategy to optimize asset utilization.

📌 Key Takeaways

• 🗓️ AGM held on October 28, 2025.
• 🏢 Registered office at 3.5 KM Feroze Watoan Warburton Road.
• ✅ Minutes from AGM on November 27, 2024, confirmed.
• 🧾 Audited Financial Statements for year ended June 30, 2025, approved.
• 👨‍💼 M/s Mushtaq & Company re-appointed as auditors for the year ending June 30, 2026.
• 🏢 Vacant buildings can be leased or rented out for increased funds.
• 💰 Leasing decision aims to increase funds inflow for the company.
• 🔑 CEO authorized to lease/rent out buildings on favorable terms.
• ✍️ CEO empowered to execute necessary documents.
• 📜 Compliance with Regulation No. 5.6.9(b) of the Rule Book of PSX.

🎯 Investment Thesis

Based solely on the AGM resolutions, a HOLD recommendation is appropriate. The resolutions themselves don’t provide enough information to make a compelling buy or sell case. Monitoring future financial releases will be necessary to make a more informed decision.

⚡ Flash Summary

Shadman Cotton Mills Limited reports a mixed Q1 2025. Revenue decreased significantly to Rs. 75.59 million from Rs. 127.299 million in the same period last year, attributed to lower output in the apparel division. However, the company turned profitable with an after-tax profit of Rs. 9.481 million compared to a loss of Rs. (27.275) million in the previous year. Earnings per share (EPS) also improved to Rs. 0.54 from a loss per share of Rs. (1.55).

📌 Key Takeaways

• 📉 Revenue declined to Rs. 75.59 million from Rs. 127.299 million YoY.
• ✅ Swung to profit: Rs. 9.481 million profit vs. Rs. (27.275) million loss YoY.
• ⬆️ EPS improved to Rs. 0.54 from Rs. (1.55) YoY.
• 🏭 Apparel division output decrease impacted revenue.
• ⚠️ High raw material and power costs affected profitability.
• 🌍 Economic challenges like inflation and high energy prices persist.
• 💼 Management focusing on other segments to improve performance.
• 💪 Expectation of positive financial performance for the rest of the year.
• 🤝 Commitment to improve financial results through hard work.
• 🤝 Out-of-court settlement for long-term financing with The Bank of Punjab

🎯 Investment Thesis

HOLD. While the company has shown improvement in profitability, the decrease in revenue and persistent economic challenges warrant caution. A BUY rating is not justified until revenue growth is demonstrated. A SELL rating is not appropriate given the improved profitability. A hold rating with price target of 20 in the short term.

⚡ Flash Summary

Shadman Cotton Mills Ltd. will hold a Board of Directors meeting on October 29, 2025, to consider the First Quarterly Accounts for the period ended September 30, 2025, along with the Directors’ Report and declaration of any entitlement. The company has declared a “Closed Period” from October 23, 2025, to October 29, 2025, during which no Director, Chief Executive Officer, or Executive shall deal in the company’s shares. This measure is compliant with Clause 5.6.1(d) of PSX Regulations, ensuring fair market practices and preventing insider trading during sensitive financial reporting periods.

📌 Key Takeaways

• 🗓️ Board meeting scheduled for October 29, 2025.
• 📍 Meeting to be held at the registered office in Feroze Watwan.
• 📑 First Quarterly Accounts for period ended September 30, 2025 to be considered.
• 📝 Directors Report to be reviewed.
• 💰 Declaration of any entitlement to be discussed.
• 🔒 “Closed Period” declared from October 23-29, 2025.
• 🚫 Insiders restricted from trading during “Closed Period”.
• 📜 Restriction complies with PSX Regulations 5.6.1(d).
• ℹ️ TRE Certificate Holders to be informed accordingly.
• 🏢 Shadman Cotton Mills Ltd. to host the meeting.

🎯 Investment Thesis

Given the lack of financial information in the announcement, a definitive BUY/SELL/HOLD recommendation is not possible. The announcement primarily concerns procedural matters related to the board meeting and trading restrictions. Without insight into the company’s financial performance, a neutral stance (HOLD) is appropriate. Further analysis is needed once the First Quarterly Accounts are released.

⚡ Flash Summary

Shadman Cotton Mills Limited will hold its Forty Sixth Annual General Meeting on October 28, 2025, to confirm the minutes of the previous meeting, adopt the audited financial statements for the year ended June 30, 2025, and appoint auditors for the year ending June 30, 2026. Shareholders will also consider approving the leasing or renting out of vacant buildings to increase funds inflow, as disclosed in the Investment Property note of the financial statements. The meeting will facilitate electronic participation and address shareholder queries regarding dividends and share conversions.

📌 Key Takeaways

• 🗓️ AGM scheduled for October 28, 2025, at 10:30 a.m.
• ✅ To confirm minutes of the previous AGM held on November 27, 2024.
• 🧾 To adopt audited financial statements for the year ended June 30, 2025.
• 🧑‍💼 M/s Mushtaq & Co. Chartered Accountants, are retiring but eligible for reappointment.
• 🏢 Consideration to lease or rent out vacant buildings to increase funds inflow.
• 📜 Approval required for leasing/renting out buildings, as per Investment Property note.
• ✍️ CEO authorized to lease/rent out buildings on terms deemed best for the company.
• 🚫 Share transfer books closed from October 21, 2025, to October 28, 2025.
• 💻 Electronic participation requires registration by October 24, 2025.
• 📧 Registration details needed: Name, CNIC, Folio/CDC, and Email ID.
• 🗳️ Proxies must be received 48 hours before the meeting.
• 🏦 CNIC and IBAN details required for e-dividend payments.
• 📧 Shareholders can consent to receive the Annual Report electronically.
• 🌐 Audited financial statements available on the company’s website: www.shadman.com.pk.
• ⚠️ Tax deduction on cash dividends: 15% for filers, 30% for non-filers.

🎯 Investment Thesis

A HOLD recommendation is appropriate at this time due to the lack of comprehensive financial data. The potential for increased funds inflow through leasing vacant buildings is a positive sign, but further analysis of the company’s financials is needed to make a more informed investment decision. A price target cannot be determined without additional financial information. The time horizon is dependent on when sufficient financial data becomes available for analysis.