PPP

⚡ Flash Summary

Pakistan Paper Products Ltd. (PPP) reported its financial results for the quarter ended September 30, 2025. The company did not announce any interim cash dividend, bonus shares, or right shares. Sales increased significantly year-over-year, but net profit also increased considerably. The earnings per share increased.

📌 Key Takeaways

• ⬆️ Sales increased to PKR 439.14 million from PKR 364.54 million year-over-year.
• ⬆️ Gross profit increased to PKR 78.07 million from PKR 61.45 million year-over-year.
• ⬆️ Operating profit increased to PKR 49.91 million from PKR 38.64 million year-over-year.
• 🔻 Finance costs decreased to PKR 8.94 million from PKR 11.73 million year-over-year.
• ⬆️ Profit before taxation increased to PKR 41.06 million from PKR 26.92 million year-over-year.
• ⬆️ Profit for the period increased to PKR 30.17 million from PKR 12.72 million year-over-year.
• ⬆️ Earnings per share increased to PKR 3.77 from PKR 1.59 year-over-year.
• 💰 No interim cash dividend was declared.
• 🏢 Property, plant, and equipment decreased slightly to PKR 1,369.49 million from PKR 1,371.74 million since June 30, 2025.
• 📉 Cash and bank balances decreased to PKR 820.09 million from PKR 870.78 million since June 30, 2025.
• ⬆️ Revenue reserves increased to PKR 748.06 million from PKR 717.89 million since June 30, 2025.
• ⬆️ Deferred tax liability increased to PKR 58.11 million from PKR 57.47 million since June 30, 2025.

🎯 Investment Thesis

Based on the improved financial performance, a HOLD recommendation is appropriate. The significant increase in revenue and profitability suggests that PPP is on a positive trajectory. However, further monitoring is needed to assess the sustainability of these improvements and to evaluate the company’s valuation relative to its peers. It is difficult to recommend a SELL rating given positive financials. A BUY rating is not appropriate due to cash concerns. A price target is not possible without additional information. More analysis is needed.