DBCI

⚡ Flash Summary

Dadabhoy Cement Industries Limited reported a loss for the quarter ended September 30, 2025. The company’s operating loss was PKR 5.509 million, compared to a loss of PKR 4.583 million in the same quarter last year. This resulted in a loss after taxation of PKR 3.122 million, a significant decrease from a profit of PKR 680 thousand in the prior year. The company did not declare any cash dividend, bonus certificates, or right certificates for the period.

📌 Key Takeaways

• 📉 Operating loss increased to PKR 5.509 million in Q3 2025 from PKR 4.583 million in Q3 2024.
• 🔻 Loss before taxation was PKR 3.122 million in Q3 2025, compared to a profit of PKR 680 thousand in Q3 2024.
• ⛔ No cash dividend declared for the quarter ended September 30, 2025.
• 🚫 No bonus certificates issued for the quarter.
• ❌ No right certificates issued for the quarter.
• 💸 Loss per share (basic and diluted) was PKR 0.03 in Q3 2025, compared to earnings per share of PKR 0.01 in Q3 2024.
• Other income decreased significantly from PKR 5.262 million to PKR 2.386 million y-o-y
• 💸 Administrative expenses increased from PKR 4.583 million to PKR 5.509 million y-o-y
• ❌ No other entitlement/corporate action was recommended.

🎯 Investment Thesis

SELL: Dadabhoy Cement Industries Limited is facing significant financial challenges. The increasing operating loss and the shift to a net loss position raise concerns about the company’s ability to generate profits in the near term. The absence of dividend payments further diminishes the investment appeal. Price target: PKR 5. Time horizon: Short term.

⚡ Flash Summary

Dadabhoy Cement Industries Limited (DBCI) reported an operating loss of PKR 5.509 million for the three months ended September 30, 2025, compared to a loss of PKR 4.583 million in the same period last year. The company experienced a net loss after taxation of PKR 3.122 million, a stark contrast to the profit of PKR 0.680 million in the corresponding period of 2024. This financial performance reflects ongoing challenges, with management focusing on developing strategic and financial plans for future growth.

📌 Key Takeaways

• 📉 DBCI reported an operating loss of PKR 5.509 million for the quarter ended September 30, 2025.
• 📉 Net loss after taxation stood at PKR 3.122 million, a significant decline from a profit of PKR 0.680 million in the same quarter of 2024.
• ⛔ Loss per share amounted to PKR (0.03) compared to earnings per share of PKR 0.01 in the prior year.
• 💼 Administrative expenses remained consistent at PKR 5.509 million.
• 💹 Other income was PKR 2.386 million, substantially lower than PKR 5.262 million in the prior year.
• 💸 Cash outflow before working capital changes amounted to PKR (2.882) million.
• Investments in Dadabhoy Energy Supply Company Limited (DESCL) remained at PKR 118.264 million.
• Assets: Property, plant, and equipment increased slightly from PKR 4.627 million to PKR 4.857 million.
• Assets: Total assets decreased marginally from PKR 240.805 million to PKR 237.130 million.
• Equity: Shareholders’ equity decreased from PKR 232.824 million to PKR 229.702 million.
• Liabilities: Total liabilities decreased slightly from PKR 7.981 million to PKR 7.429 million.

🎯 Investment Thesis

Given DBCI’s current financial distress and negative performance trends, a SELL recommendation is warranted. The company’s inability to generate profits and persistent losses make it an unattractive investment in the short to medium term. There is a risk of further equity dilution and potential bankruptcy.

⚡ Flash Summary

Dadabhoy Cement Industries Limited reported a net loss of PKR 12.485 million for the year ended June 30, 2025, a significant downturn compared to a profit of PKR 4.873 million in the previous year. The company’s loss per share stood at PKR 0.13, a stark contrast to the earnings per share of PKR 0.05 in 2024. Administrative expenses remained high, contributing to the overall loss. No dividends, bonus shares, or right shares have been recommended by the board.

📌 Key Takeaways

• 📉 DBCI reported a net loss of PKR 12.485 million in 2025, a reversal from a PKR 4.873 million profit in 2024.
• 📉 Loss per share was PKR 0.13 in 2025, compared to earnings per share of PKR 0.05 in 2024.
• 🏢 Administrative expenses were PKR 25.156 million in 2025, higher than PKR 17.714 million in 2024.
• 🏦 Financial costs remained stable at PKR 25.156 million in 2025 compared to PKR 17.714 million in 2024.
• ➖ Other charges slightly decreased to PKR 528 thousand from PKR 531 thousand.
• ⬆️ Other income decreased significantly to PKR 13.959 million from PKR 23.411 million.
• 🚫 No cash dividend was recommended for the year.
• 🚫 No bonus certificates were recommended.
• 🚫 No right certificates were recommended.
• 📅 The 45th Annual General Meeting will be held on October 28, 2025.
• 🛑 Share transfer books will be closed from October 21 to October 28, 2025.

🎯 Investment Thesis

Given the significant loss reported for the year ended June 30, 2025, and the negative EPS, a SELL recommendation is warranted. The company’s financial performance has deteriorated substantially compared to the previous year, and there is no immediate indication of a turnaround. Price target is set to PKR 3.00 with a time horizon of 12 months, assuming further downside due to continued losses and market uncertainty. The recommendation will be re-evaluated once there is evidence of improved operational efficiency and profitability.