BAPL

⚡ Flash Summary

Bawany Air Products Limited (BAPL) reported a net loss of (PKR 5.661 million) for the quarter ended September 30, 2025, compared to a loss of (PKR 1.859 million) in the same period last year, resulting in an EPS of (PKR 0.75) vs. (PKR 0.25). The company’s current assets increased significantly from PKR 135.429 million to PKR 3,292.696 million, while current liabilities also rose from PKR 6.132 million to PKR 40.713 million. The company is in the process of acquiring 100% shareholding in Alman Seyyam Sugar Mills (ASSML).

📌 Key Takeaways

• 📉 BAPL’s net loss widened significantly to PKR (5.661) million in Q3 2025 from PKR (1.859) million in Q3 2024.
• 😟 EPS deteriorated to (PKR 0.75) in Q3 2025, compared to (PKR 0.25) in the same quarter last year.
• 📈 Current assets surged to PKR 3,292.696 million, a notable increase from PKR 135.429 million.
• ⚠️ Current liabilities also increased substantially to PKR 40.713 million (2025) from PKR 6.132 million (2024).
• 💰 The company’s equity decreased from PKR 130.136 million to PKR 34.916 million.
• 💼 BAPL is undertaking a significant strategic shift by changing its object clause to include investments in shares and securities.
• 🤝 The company is in the process of acquiring 100% shareholding in Alman Seyyam Sugar Mills (ASSML).
• ✅ PSX removal from the non-compliant counter is a positive signal, restoring confidence among shareholders.
• 💸 The company is issuing shares to the sponsor shareholders of ASSML as part of the takeover consideration.
• 🏦 BAPL’s cash and bank balances are low at PKR 493,520 as of September 30, 2025.
• 📄 The report is unaudited, so figures are subject to change.
• 🤝 The company acknowledges shareholder support and looks forward to strengthening relationships.
• 🏢 Naim Anwar (CEO) and Muhammad Ali (Director) signed off on the Director’s report.

🎯 Investment Thesis

Given the company’s current financial performance and ongoing turnaround efforts, a HOLD rating is appropriate. The acquisition of Alman Seyyam Sugar Mills could potentially improve the company’s prospects, but there are significant integration and execution risks. A price target cannot be specified due to the uncertainty surrounding the company’s future performance. Time horizon: MEDIUM_TERM (2-3 years) to allow for the turnaround strategy to take effect.

⚡ Flash Summary

Bawany Air Products Limited (BAPL) reported a net loss of PKR 54.049 million for the year ended June 30, 2025, a significant increase from the PKR 22.623 million loss in the previous year. This increase was primarily driven by expenses related to the enhancement of authorized capital, amounting to PKR 43.86 million. The company is shifting its business focus from gas manufacturing to investment and securities and has signed an agreement to acquire Alman Seyyam Sugar Mills (ASSML). A key positive is the removal of the company from the PSX non-compliant counter to the normal trading counter.

📌 Key Takeaways

• ⚠️ Net loss increased significantly to PKR 54.049 million in 2025 from PKR 22.623 million in 2024.
• 📉 Accumulated losses rose to PKR 104.279 million as of June 30, 2025.
• 💼 Business transformed from gas manufacturing to investment and securities.
• 🤝 Agreement signed to acquire 100% of Alman Seyyam Sugar Mills (ASSML).
• 💰 Authorized capital raised to PKR 11 billion.
• 🏭 ASSML’s 10,000 MT/day sugar plant is expected to generate dividends and enhance shareholder value.
• 📈 Company shifted from the PSX non-compliant counter to the normal trading counter.
• ✔️ Current assets grew substantially to PKR 3,184.701 billion in 2025.
• ❌ Revenue remains at zero.
• 📉 Negative earnings per share of (PKR 7.20).
• ✔️ Company intends to proceed with Right Shares after SECP’s approval.
• ⚠️ Auditors report on going concern due to losses and increase in authorised capital fee

🎯 Investment Thesis

Given the current financial performance and the speculative nature of the company’s future prospects, a HOLD recommendation is appropriate. The company’s future success is dependent on factors. The company is in transition and needs to demonstrate revenue growth and profitability before a more positive investment thesis can be considered. Price Target: Speculative and dependent on successful execution of new strategy.