⚡ Flash Summary
Waves Corporation Limited’s report for the period ended September 30, 2025, indicates a positive trajectory. Consolidated net sales increased to PKR 3,544.111 million from PKR 3,092.911 million in the same period last year. The company reported a significant rise in profit after taxation, reaching PKR 647.957 million compared to PKR 281.845 million last year, resulting in improved earnings per share (EPS) of PKR 2.30 versus PKR 1.00. Despite tough economic conditions, the Directors did not recommend any payout to shareholders. The company expresses gratitude to stakeholders and remains committed to managing upcoming challenges.
Signal: HOLD ⏸️
Strength: 6/10
Sentiment: POSITIVE
Time Horizon: MEDIUM_TERM
📌 Key Takeaways
- 📈 Consolidated net sales increased to PKR 3,544.111 million from PKR 3,092.911 million year-over-year.
- 💰 Gross profit rose to PKR 1,054.806 million compared to PKR 978.689 million in the previous year.
- 🚀 Profit from operations saw a substantial increase to PKR 1,151.547 million from PKR 502.128 million.
- 📊 Profit before levies and taxation improved to PKR 720.031 million versus PKR 375.544 million.
- ✅ Profit after taxation significantly increased to PKR 647.957 million from PKR 281.845 million.
- ⭐ Earnings Per Share (EPS) rose to PKR 2.30 from PKR 1.00, indicating improved profitability per share.
- 🏢 Standalone income from subsidiaries decreased slightly to PKR 278.671 million from PKR 296.198 million.
- 💸 Standalone profit after taxation increased to PKR 188.451 million from PKR 179.413 million.
- ✔️ Standalone EPS also increased slightly to PKR 0.67 from PKR 0.64.
- 🏛️ Directors did not recommend any pay-out to the shareholders.
- 🤝 Company has divested its 2.45% equity investment in Waves Home Appliances Limited resulting in a loss on disposal of Rupees 91.853 million
🎯 Investment Thesis
Given the improved financial performance, particularly the increased EPS, and the ongoing debt restructuring, a HOLD recommendation is appropriate. The company is showing signs of recovery and growth, but caution is warranted due to the challenging economic environment and the decision to withhold dividends. A price target cannot be reasonably established based on the data provided. This recommendation has a MEDIUM_TERM time horizon, pending further clarification on debt restructuring and the stabilization of the economic environment.
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Disclaimer: AI-generated analysis. Not financial advice.
