BUY

⚡ Flash Summary

Ghani Global Glass Limited (GGGL) reported a strong financial performance for FY2025, with significant increases in sales and profitability. Net sales increased to PKR 2,932 million, a notable rise from PKR 2,440 million in FY2024. Profit after tax nearly doubled, reaching PKR 301 million compared to PKR 145 million in the previous year. The company is expanding its production capacity and exploring new markets in MENA, Africa, and Latin America. GGGL faces risks including competition from Chinese manufacturers and fluctuations in raw material and energy costs.

📌 Key Takeaways

• ⬆️ Net sales increased to PKR 2,932 million in FY2025 from PKR 2,440 million in FY2024.
• 💰 Gross profit improved to PKR 755 million, up from PKR 550 million.
• 📈 Operating profit jumped to PKR 643 million from PKR 427 million.
• ✅ Profit after tax nearly doubled to PKR 301 million from PKR 145 million.
• 🚀 EPS rose significantly from PKR 0.60 to PKR 1.25.
• 🏭 Non-current assets expanded to PKR 3,121 million due to capital expenditure.
• 💸 Current assets increased to PKR 3,085 million, driven by trade receivables.
• 🌍 Exploring new export markets in MENA, Africa, and Latin America.
• 🔩 Capacity expansion with new vial manufacturing machines from Italy.
• 🧪 Focus on producing neutral borosilicate glass tubes, ampoules, and vials.
• 🛡️ Mitigating risks by adopting cost-effective techniques and securing long-term contracts.
• 🤝 Partnering with leading pharmaceutical companies for ampoule manufacturing.
• 🎯 Targeting self-sufficiency in tubes and establishing market leadership.
• 🏢 Planning a new ampoules manufacturing plant in Saudi Arabia (KSA).

🎯 Investment Thesis

I recommend a BUY rating for Ghani Global Glass Limited. The company’s strong financial performance in FY2025, driven by increased sales and improved profitability, makes it an attractive investment. Expansion plans into new markets and capacity enhancements provide further growth potential. Mitigating risks through cost management and strategic partnerships should support future earnings. The target price will depend on a deeper dive in my model and benchmarking to peers, the time horizon would be medium-term (12-18 months).

⚡ Flash Summary

Ghani Global Glass Limited (GGGL) reported strong financial results for FY2025, showcasing significant improvements in revenue and profitability. The company’s net sales increased to PKR 2,932 million, driven by increased demand and better pricing strategies. Gross profit surged to PKR 755 million due to improved sales volume, margins, and cost management. This positive performance translated into a Profit After Tax of PKR 301 million and an EPS of PKR 1.25, indicating a robust financial turnaround for the company.

📌 Key Takeaways

• 📈 Net sales increased from PKR 2,440 million in FY2024 to PKR 2,932 million in FY2025.
• 💰 Gross profit jumped from PKR 550 million to PKR 755 million, driven by better cost management.
• 💪 Operating profit rose from PKR 427 million to PKR 643 million due to reduced finance costs and stronger gross profit.
• ✅ Profit after tax increased significantly from PKR 145 million to PKR 301 million.
• ⭐ EPS improved from PKR 0.60 to PKR 1.25, reflecting higher net profit.
• 🏭 Non-current assets expanded from PKR 2,557 million to PKR 3,121 million due to capital expenditure on new glass tubing furnace and ampoule lines.
• 💵 Current assets rose from PKR 2,662 million to PKR 3,085 million, supported by growth in trade receivables and improved cash balances.
• 🌍 The company is focusing on export growth in MENA, Africa, and Latin America.
• 🤝 Strategic alliances with leading pharmaceutical manufacturers are in place.
• 🧪 Capacity is enhanced with 06 Vial and 22 Ampoule manufacturing machines operating round the clock.
• 🛡️ Risk mitigation includes introducing oxyfuel technology, installing VPSA for oxygen, and adding solar systems to reduce energy costs.
• 🇰🇼 Plans to establish an ampoules manufacturing plant in KSA to expand market presence.
• ⚙️ Focus on improving capacity utilization of newly installed machinery.

🎯 Investment Thesis

I recommend a BUY for GGGL. The company’s strong financial performance in FY2025, driven by revenue growth and improved profitability, suggests a positive outlook. Strategic investments in new infrastructure and expansion into international markets should further enhance growth prospects. While risks remain, the company’s mitigation strategies and strong financial position make it an attractive investment. My price target is PKR 18, with a time horizon of 12 months, contingent on continued revenue growth and effective cost management.