NEGATIVE - FoxLogica

⏸️ SCL: HOLD Signal (5/10) – Transmission of Annual Report for the Year Ended June 30, 2025

⚡ Flash Summary

Shield Corporation Limited’s annual report for the year ended June 30, 2025, reveals a challenging year with a net loss of Rs. 12.65 million and a significant decrease in net sales by 23.31% compared to the previous year. Despite the sales decline, export sales increased by 186%, offering a slight positive note. The company attributes the drop in sales to altered consumption patterns and increased price sensitivity in the market. Strategic decisions were implemented to consolidate the company’s position, including the sale of investment property and the disposal of diaper-related machinery, resulting in a non-operating gain of Rs. 285.51 million but also an Rs. 87.72 loss.

Signal: HOLD ⏸️

Strength: 5/10

Sentiment: NEGATIVE

Time Horizon: MEDIUM_TERM

📌 Key Takeaways

📉 Net sales decreased by 23.31% year-over-year (YoY).
📈 Export sales increased significantly by 186%.
⚠️ The company incurred a loss after tax of Rs. 12.65 million.
😔 Loss per share was Rs. 3.25, compared to a loss of Rs. 92.99 in the previous year.
✅ Gross profit margin improved slightly, increasing by 100 bps to 23.52%.
✂️ Selling and distribution expenses decreased due to cost curtailment efforts.
💸 Finance costs decreased due to a drop in the policy rate and reduction in borrowing.
🏢 Investment property was sold, resulting in a non-operating gain of Rs. 285.51 million.
🗑️ Diaper-related machinery was disposed of, resulting in a loss of Rs. 87.72 million.
🚫 No dividend was proposed for the year ended June 30, 2025.
🌍 Baby Care and Oral Care products were successfully introduced to more markets, sales increased by 186%.
🤝 The company contributed Rs. 780 million to the National Exchequer in taxes and duties.

🎯 Investment Thesis

Based on the current financial performance, a HOLD recommendation is justified. Despite cost-cutting measures, revenue declines and a net loss raise concerns. However, increasing exports and a commitment to sustainability suggest potential for recovery. A price target cannot be reliably established due to a lack of financial guidance for the future, but more quantitative information may become available with further releases. A more bullish stance would depend on evidence of successful execution of strategic initiatives.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 6, 2025

announcements DCL Signal: HOLD

⏸️ DCL: HOLD Signal (5/10) – Transmission of Annual Report for the Year Ended June 30,2025

⚡ Flash Summary

Dewan Cement Limited’s 2025 annual report reveals a challenging year marked by a 4% decline in net sales revenue, primarily due to periodic plant maintenance and increased government duties. Despite the revenue dip, the company demonstrated improved profitability, achieving a gross profit margin of 7% compared to 2% in the prior year, due to enhanced cost management and operational efficiencies. The company successfully transformed a loss before levies and taxes into a profit. However, auditors have raised concerns about the classification of Pre-IPO investment and provision for markup.

Signal: HOLD ⏸️

Strength: 5/10

Sentiment: NEGATIVE

Time Horizon: LONG_TERM

📌 Key Takeaways

⚠️ Net sales decreased by 4% due to maintenance and government duties.
✅ Gross profit margin improved significantly from 2% to 7% year-over-year.
⬆️ Company transformed a loss before levies into a profit of Rs. 351 million.
⬇️ Loss per share increased to Rs. (2.00) from Rs. (1.05).
🏭 Dispatches decreased by 9.40% to 1,428,020 tons.
☀️ Company installed 6 MW solar power projects, reducing reliance on conventional energy.
📈 Pakistan’s GDP shows marginal increase from 2.5% to 2.65%, with expected expansion.
🏦 Policy rate reduced from 22% to 11%, boosting economic activity.
💼 Auditors qualified their report on Pre-IPO investment and provision for markup.
⚖️ Ongoing recovery suits instituted by banks are being defended.
🚫 No dividend declared due to loss for the year.
🤝 Company emphasizes strong Corporate Social Responsibility (CSR) initiatives.
♀️ Gender Pay Gap reported: Mean 13.96%, Median 9.52%.
🌱 Company focuses on sustainable practices and renewable energy initiatives.

🎯 Investment Thesis

Given the going concern warnings, and audit qualifications, a HOLD rating seems most appropriate. The company needs to resolve its outstanding debts and legal matters and improve the quality of management and their reporting before it would be considered for purchase.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 6, 2025

announcements ORM Signal: HOLD

⏸️ ORM: HOLD Signal (6/10) – Transmission of Annual Report for the Year Ended June 30, 2025

⚡ Flash Summary

Orient Rental Modaraba (ORM) reported a 16% increase in gross turnover, reaching Rs. 2,460.4 million, primarily driven by its Operations & Maintenance segment. Net profit, however, decreased to Rs. 214 million due to rising tax rates and levies. The Board approved a cash dividend of 12%, or Rs. 1.2 per certificate. The company faces challenges such as uncertain gas supply, high maintenance costs, and increasing environmental regulations. The company’s financial position grew by 14% to Rs. 2,656.7 million despite the reduction in net profit.

Signal: HOLD ⏸️

Strength: 6/10

Sentiment: NEGATIVE

Time Horizon: MEDIUM_TERM

📌 Key Takeaways

⬆️ Gross turnover increased by 16% to Rs. 2,460.4 million.
🛠️ Operations & Maintenance segment was the primary growth driver, contributing 23% to the increase.
📉 Net profit decreased to Rs. 214 million due to increased taxes and levies.
💰 Board approved a 12% cash dividend, or Rs. 1.2 per certificate.
💸 Total tax incidence computes to 49%.
❗ Finance Act 2025 raised withholding tax rates on rental and engineering services, further eroding after-tax profits.
🏦 State Bank’s policy rate reduction to 11% positively influences the economy and operations.
⚠️ Several factors continue to affect profitability, including uncertain gas supply, high maintenance costs, and regulatory requirements.
🌊 Recent floods placed significant pressures on businesses across the country, disrupting supply chains and operations.
💼 Board remains committed to pursuing new business opportunities to diversify revenue streams and tap into emerging markets.
📈 The Company’s assets grew by 14% to Rs 2,656.7 million.
🌐 The Company has a diversified portfolio.

🎯 Investment Thesis

Given the conflicting signals of increased revenue but decreased profit and significant risks, HOLD the ORM. The company is being affected by external problems, especially in Pakistani regulation.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 6, 2025

announcements POL Signal: HOLD

⏸️ POL: HOLD Signal (6/10) – Transmission of Annual Report for the Year Ended June 30, 2025

⚡ Flash Summary

Pakistan Oilfields Limited (POL) reported a profit after tax of Rs. 24.18 billion for the year ended June 30, 2025, a significant decrease of 38.24% compared to the previous year’s Rs. 39.15 billion. The decrease is attributed to charging the cost of the Balkassar Deep-1 well to exploration expenses, along with reduced sales due to enhanced pipeline pressures for gas distribution. Despite these challenges, POL continues to focus on core exploration and production activities, demonstrating resilience and a commitment to long-term value creation. POL’s announcement of a video link facility for the Annual General Meeting is a positive step to include shareholders.

Signal: HOLD ⏸️

Strength: 6/10

Sentiment: NEGATIVE

Time Horizon: MEDIUM_TERM

📌 Key Takeaways

🚨 Profit after tax decreased significantly by 38.24% to Rs. 24.18 billion from Rs. 39.15 billion in 2024.
📉 Earnings per share (EPS) dropped to Rs. 85.19 compared to Rs. 137.93 in the prior year.
💰 Cash dividend reduced from Rs. 95 to Rs. 75 per share.
📉 EBITDA fell from Rs. 55.036 billion in 2024 to Rs. 35.342 billion in 2025.
📉 Saved Foreign Exchange down from US$ 423 million to US$ 394 million.
⛽ Net sales decreased to Rs. 57.117 billion from Rs. 65.290 billion.
🚧 Exploration costs increased substantially to Rs. 11.180 billion compared to Rs. 1.606 billion in 2024.
📈 Company has a separate IT wing to control and monitor related E&P functions and continuously upgrading its IT structure to cope with recent advancement in technology.
🚧 Has near field facilities at all locations of major operations, enabling rapid monetization (e.g. Jhandial-3 was connected to production in record time).
💧Well established pipeline network (from POL owned and operated fields to Attock Refinery Limited) which safely transported 8.2 million barrels of crude during the year.
✔ Declared dividend of Rs. 75 per share i.e. 750% (500% final and 250% interim).
🌱 Continuous focus on cost discipline and revenue enhancement strategies.
🌍 Contribution to national exchequer was Rs. 26.615 billion (down from Rs. 30.931 billion in 2024).
🛢 Production enhancement is being given due importance, including a focus on drilling of development wells.

🎯 Investment Thesis

Given the decrease in profitability and EPS, a HOLD rating is given. The negative performance is attributed to the Balkassar Deep-1 well and lower earnings from royalties. However, the company continues to have good prospects for future long-term profits, but the present high uncertainties of the market warrant a Hold position in POL shares.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 6, 2025

announcements DWAE Signal: SELL

📉 DWAE: SELL Signal (8/10) – Transmission of Annual Report for the Year Ended June 30,2025

⚡ Flash Summary

Dewan Automotive Engineering Limited’s annual report for the year ended June 30, 2025, reveals a challenging financial situation. The company experienced negative gross and operating profits, alongside a net loss after tax of PKR 51.943 million. The auditor’s report was qualified due to concerns about the company’s ability to continue as a going concern. The company is facing severe working capital constraints and has accumulated significant losses, resulting in a net capital deficiency of PKR 1,576.553 million. Despite these challenges, the management is actively seeking financing to resume normal manufacturing operations.

Signal: SELL 📉

Strength: 8/10

Sentiment: NEGATIVE

Time Horizon: SHORT_TERM

📌 Key Takeaways

📉 Net loss after tax: PKR (51.943) million in 2025 vs PKR (67.912) million in 2024.
📉 Gross loss: PKR (13.249) million in 2025 vs PKR (13.933) million in 2024.
📉 Operating loss: PKR (21.053) million in 2025 vs PKR (16.752) million in 2024.
⚠️ Auditors qualified the report: Due to concerns about going concern.
❗ Accumulated losses: Increased to PKR (2,020.547) million.
❗ Net capital deficiency: PKR (1,576.553) million.
❌ No dividend recommended: Due to losses.
✅ Management is actively seeking financing: To resolve working capital constraints.
📈 Automotive industry in Pakistan: Recovering with a 43% increase in auto sales.
⚖️ Legal compliance: Compliant with corporate governance provisions.
🧑‍💼 Limited workforce: Only two male employees during the year.
🔍 Key risks: Depreciation of PKR vs USD and lack of working capital.
🏢 Main activities: Manufacturing, assembling, and selling vehicles.
🔒 The company’s operations are closed: Due to working capital constraints.

🎯 Investment Thesis

Due to severe financial distress, ongoing losses, auditor qualifications, and high risks, a SELL recommendation is warranted. The company’s ability to continue as a going concern is uncertain. Any price target is highly speculative given the lack of financial stability. Time horizon: Immediate.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 6, 2025

announcements MSCL Signal: SELL

📉 MSCL: SELL Signal (7/10) – Financial Results for the Year Ended June 30, 2025

⚡ Flash Summary

Metropolitan Steel Corporation Limited (MSCL) reported a challenging year, with a decrease in revenue and a net loss after income taxation. Revenue decreased from 122.475 million to 100.747 million Rupees. The company experienced a loss after income taxation of (12.423) million Rupees compared to a loss of (23.342) million Rupees in the prior year. Despite the revenue decline, the reduced net loss indicates some improvement in managing expenses or realizing other income.

Signal: SELL 📉

Strength: 7/10

Sentiment: NEGATIVE

Time Horizon: MEDIUM_TERM

📌 Key Takeaways

📉 Revenue declined by 17.75% YoY, from 122.475 million to 100.747 million Rupees.
❌ Gross loss decreased from (17.213) million to (11.683) million Rupees.
🙁 Loss after income taxation improved from (23.342) million to (12.423) million Rupees.
⛔️ Loss per share improved from (0.75) to (0.40) Rupees.
⚠️ Total assets increased slightly from 890.061 million to 912.957 million Rupees.
👍 Cash and bank balances significantly increased from 3.430 million to 8.009 million Rupees.
👎 Stock-in-trade decreased significantly from 48.792 million to 14.450 million Rupees.
✔️ Total equity increased from 814.746 million to 844.882 million Rupees.
⬆️ Revaluation surplus on property, plant and equipment increased from 529.982 million to 568.022 million Rupees.
🔻 Accumulated losses increased from (105.512) million to (113.416) million Rupees.
💸 Net cash generated from operating activities was 16.582 million Rupees, compared to (0.559) million Rupees in the prior year.
💸 Net cash from investing activities was 6.416 million Rupees, compared to (2.936) million Rupees in the prior year.
💰 Cash and cash equivalents at the end of the year increased from 3.430 million to 23.009 million Rupees.

🎯 Investment Thesis

Based on the declining revenue, continued losses, and overall weak financial performance, a SELL recommendation is warranted. While there are positive signs such as increased cash balances, these are insufficient to offset the underlying challenges. A price target cannot be accurately provided without a full discounted cash flow or relative valuation analysis. The time horizon is MEDIUM_TERM (6-18 months) pending significant improvements in financial performance.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 6, 2025

announcements MSCL Signal: SELL

📉 MSCL: SELL Signal (7/10) – Financial Results for the Year Ended June 30, 2025

⚡ Flash Summary

Signal: SELL 📉

Strength: 7/10

Sentiment: NEGATIVE

Time Horizon: MEDIUM_TERM

📌 Key Takeaways

📉 Revenue declined by 17.75% YoY, from 122.475 million to 100.747 million Rupees.
❌ Gross loss decreased from (17.213) million to (11.683) million Rupees.
🙁 Loss after income taxation improved from (23.342) million to (12.423) million Rupees.
⛔️ Loss per share improved from (0.75) to (0.40) Rupees.
⚠️ Total assets increased slightly from 890.061 million to 912.957 million Rupees.
👍 Cash and bank balances significantly increased from 3.430 million to 8.009 million Rupees.
👎 Stock-in-trade decreased significantly from 48.792 million to 14.450 million Rupees.
✔️ Total equity increased from 814.746 million to 844.882 million Rupees.
⬆️ Revaluation surplus on property, plant and equipment increased from 529.982 million to 568.022 million Rupees.
🔻 Accumulated losses increased from (105.512) million to (113.416) million Rupees.
💸 Net cash generated from operating activities was 16.582 million Rupees, compared to (0.559) million Rupees in the prior year.
💸 Net cash from investing activities was 6.416 million Rupees, compared to (2.936) million Rupees in the prior year.
💰 Cash and cash equivalents at the end of the year increased from 3.430 million to 23.009 million Rupees.

🎯 Investment Thesis

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 6, 2025

announcements NCPL Signal: SELL

📉 NCPL: SELL Signal (8/10) – TRANSMISSION OF ANNUAL REPORT FOR THE YEAR ENDED JUNE 30, 2025

⚡ Flash Summary

Nishat Chunian Power Limited (NCPL) reported a significant decline in financial performance for the year ended June 30, 2025. Revenue plummeted to PKR 5.57 billion, compared to PKR 15.22 billion in the previous year, primarily due to reduced capacity factor. The company incurred a loss after tax of PKR 3.38 billion, a stark contrast to the net profit of PKR 4.91 billion in 2024. This translates to a loss per share of PKR 9.19, a considerable deviation from the earnings per share of PKR 13.37 in the prior period. The adverse financial results were influenced by lower generation demand, reduced capacity tariff components, and the impact of an amendment agreement (‘AA’).

Signal: SELL 📉

Strength: 8/10

Sentiment: NEGATIVE

Time Horizon: LONG_TERM

📌 Key Takeaways

📉 Revenue decreased significantly by 63.4% year-over-year, from PKR 15.22 billion to PKR 5.57 billion.
❌ The company recorded a loss after tax of PKR 3.38 billion in 2025, contrasting with a profit of PKR 4.91 billion in 2024.
📉 Loss per share was PKR 9.19 in 2025 compared to earnings per share of PKR 13.37 in 2024.
🏭 Electricity dispatch to Power Purchaser significantly reduced to 57,209 MWH from 240,447 MWH.
⚡️ Plant capacity factor declined to 3.34% from 13.99%.
✅ Availability factor remained high at 99.74% compared to 93.77%.
📜 AA encompasses significant financial impacts approved by the Board of Directors on December 4, 2024.
Hybrid Take-and-Pay model implemented from November 1, 2024.
🤝 Full and final settlement of past dues and claims by Power Purchaser improved liquidity position.
💰 Receivables from Power Purchaser reduced to PKR 1,464.17 million from PKR 13,170.21 million.
🚫 Overdue receivables decreased to PKR 1,052.83 million from PKR 10,170.06 million.
💵 Two interim dividends at 50% and 20% respectively have been declared and distributed.
💰 An overhauling reserve of PKR 5,509 million created.

🎯 Investment Thesis

Given the significant decline in financial performance, including a substantial loss, reduced revenue, and the negative impact of the amendment agreement, a SELL recommendation is warranted. The company needs to demonstrate a sustainable recovery in operational performance and profitability before considering an investment. A price target cannot be determined without more information. The time horizon is long-term, pending evidence of a turnaround.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 6, 2025

announcements CASH Signal: HOLD

⏸️ CASH: HOLD Signal (5/10) – Financial Results for Year Ended June 30, 2025

⚡ Flash Summary

Calcorp Limited’s financial results for the year ended June 30, 2025, reveal a mixed performance. While the company generated a net cash flow from operating activities of PKR 165.91 million, income from vehicle plying for hire decreased significantly. Additionally, no cash dividend, bonus shares, or right shares were recommended by the Board of Directors. The annual general meeting is scheduled for October 28, 2025.

Signal: HOLD ⏸️

Strength: 5/10

Sentiment: NEGATIVE

Time Horizon: MEDIUM_TERM

📌 Key Takeaways

❌ No cash dividend declared for the year ended June 30, 2025.
🚫 No bonus shares announced.
⛔️ No right shares issued.
📉 Income from vehicle plying for hire decreased from PKR 16.18 million to PKR 10.49 million.
💰 Cash and bank balances significantly increased to PKR 312.57 million (2024: PKR 128,273).
⬆️ Net cash generated from operating activities increased to PKR 165.91 million (2024: PKR 33.18 million).
📉 Profit after income tax decreased from PKR 13.62 million to PKR 10.47 million.
⬇️ Earnings per share (EPS) decreased to PKR 0.97 (2024: PKR 1.27).
📅 Annual General Meeting (AGM) scheduled for October 28, 2025.
🛑 Share transfer books closed from October 25, 2025, to October 28, 2025.
⬆️ Trade receivable grew to PKR 25,602,255.
⬆️ Deposits, prepayments and other receivables increased to PKR 129,825,841.
➡️ Authorised Share Capital remained constant to PKR 200,000,000.

🎯 Investment Thesis

Given the decline in revenue, profit, and EPS, coupled with no dividend or bonus announcements, a HOLD recommendation is appropriate. The improved cash flow from operations and large increase in cash balance are positive signs, warranting monitoring of the company’s future performance.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 6, 2025

announcements GATI Signal: SELL

📉 GATI: SELL Signal (8/10) – Financial Results for the Year Ended June 30, 2025

⚡ Flash Summary

Gatron Industries reported a challenging year, with a significant decrease in sales and a substantial loss for the year ended June 30, 2025. The company’s revenue declined by approximately 22.6% compared to the previous year, leading to a notable operating loss. Increased finance costs further exacerbated the financial strain. The company reported a loss per share of (18.13) Rupees, a stark contrast to the (2.36) Rupees loss per share in the prior year. Despite the losses, the board did not recommend any cash dividend, bonus shares, or right shares.

Signal: SELL 📉

Strength: 8/10

Sentiment: NEGATIVE

Time Horizon: SHORT_TERM

📌 Key Takeaways

📉 Sales plummeted to PKR 26,328.04 million, a 22.6% decrease from PKR 34,013.58 million in 2024.
⚠️ The company swung from an operating profit of PKR 1,392.50 million in 2024 to an operating loss of PKR (101.45) million in 2025.
💰 Finance costs increased to PKR 1,539.27 million, compared to PKR 1,494.59 million in the previous year.
❌ Loss before levies and income tax amounted to PKR (1,640.72) million, a significant downturn from a loss of PKR (93.55) million in 2024.
🧾 The company reported a loss for the year of PKR (1,971.12) million, sharply down from a loss of PKR (204.36) million in 2024.
📉 Loss per share (basic and diluted) was PKR (18.13), a considerable decline from PKR (2.36) in the previous year.
🚫 No cash dividend was recommended for the year ended June 30, 2025.
🚫 No bonus shares were recommended for the year ended June 30, 2025.
🚫 No right shares were recommended for the year ended June 30, 2025.
🏢 Total assets decreased slightly from PKR 34,588.89 million to PKR 34,236.88 million.
📉 Equity decreased from PKR 13,287.16 million to PKR 11,372.59 million.
⬆️ Long-term financing decreased from PKR 8,507.13 million to PKR 7,628.31 million.

🎯 Investment Thesis

Given the significant decline in financial performance, mounting losses, and negative valuation implications, a SELL recommendation is warranted. The company’s ability to recover in the short to medium term is uncertain. Therefore, a price target cannot be reliably established, but significant downside risk exists. Time horizon is SHORT_TERM as the risks are immediate and substantial.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 6, 2025

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