SELL

⚡ Flash Summary

AMTEX Limited’s annual report for the year ended June 30, 2025, reveals a challenging financial performance. The company experienced a significant decline in sales, dropping from Rupees 2,793.103 million to Rupees 2,370.790 million. This downturn resulted in a net loss after taxation of Rupees 130.150 million, a stark contrast to the previous year’s net profit of Rupees 179.028 million. The auditors have raised concerns about the company’s ability to continue as a going concern due to accumulated losses and liquidity issues, but management asserts efforts are underway to maintain operations.

📌 Key Takeaways

• 📉 Sales declined by 15.13% from Rupees 2,793.103 million to Rupees 2,370.790 million.
• ❌ Net loss after tax of Rupees 130.150 million, compared to a profit of Rupees 179.028 million last year.
• ⚠️ Auditors raise concerns about the company’s ability to operate as a going concern.
• 😔 Gross profit decreased significantly from Rupees 421.932 million to Rupees 133.009 million.
• 📉 Negative equity increased to Rupees 8,584.816 million.
• 😬 Current liabilities exceed current assets by Rupees 7,537 million.
• 🏭 Processing division operations have been stopped.
• ⚖️ Company is involved in litigation with SNGPL and certain banks.
• 🚫 No dividend payout recommended due to tight cash flow.
• 🤔 Management is making efforts for loan restructuring.
• ⚡️ Company’s export performance declined compared to last year.
• 🌐 Company is shifting focus to non-traditional markets.

🎯 Investment Thesis

A SELL recommendation is appropriate due to significant financial distress and high risk. Accumulated losses, negative equity, and auditor concerns undermine any potential for short-term gains. A turnaround is uncertain. A conservative price target cannot be reasonably established given current circumstances. The time horizon is short-term (less than one year) due to company’s challenges in maintaining operations.

⚡ Flash Summary

AMTEX Limited’s annual report for the year ended June 30, 2025, has been REVOKED, indicating possible issues with the information initially presented. The company experienced a net loss after tax of Rupees 130.150 million compared to a net profit of Rupees 179.028 million in the previous year. Sales decreased from Rupees 2,793.103 million to Rupees 2,370.790 million. The auditor’s report expresses concern regarding the company’s ability to continue as a going concern due to accumulated losses and liquidity issues.

📌 Key Takeaways

• ❌ Annual Report 2025 is REVOKED, signaling potential data inaccuracies.
• 📉 Sales decreased from PKR 2,793.103 million to PKR 2,370.790 million.
• ⚠️ Net loss of PKR 130.150 million vs. profit of PKR 179.028 million prior year.
• 🚩 Going concern concerns raised by auditors: liquidity, accumulated losses.
• 🏭 Textile exports show recovery signs, but AMTEX declined.
• 💲Gross profit plummeted from PKR 421.932 million to PKR 133.009 million.
• 💼 Operating profit plunged from PKR 366 million to PKR 63 million loss.
• 😭 EPS tanked from PKR 0.69 to negative PKR 0.50.
• 🏦 Short term bank borrowings were at PKR 5,044 million
• 🚫 No dividend declared.
• 📅 Annual General Meeting set for October 28, 2025.
• 🤝 Related party transactions ratified, potential future deals.
• ⚖️ Numerous pending litigations affect financials.

🎯 Investment Thesis

Given the challenging financial performance, auditor concerns, pending litigations, and revocation of annual report and based on the lack of a price target or specific future plans beyond vague hopes of a turnaround, a SELL recommendation for AMTEX Limited is warranted. The company faces a number of issues that cause for concern. It is highly unlikely in such a business climate that AMTEX will be a good investment in the near future.

⚡ Flash Summary

AMTEX Limited’s annual report for the year ended June 30, 2025, reveals a challenging financial year. The company experienced a decrease in sales, resulting in a net loss after tax of Rupees 130.150 million compared to a net profit of Rupees 179.028 million in the previous year. The auditors have expressed concerns about the company’s ability to continue as a going concern due to accumulated losses and liquidity issues. However, management is making efforts to restructure loans and improve operations, with signs of potential recovery in textile exports.

📌 Key Takeaways

• 🚨 AMTEX Limited reported a net loss after tax of Rupees 130.150 million for FY25, a significant decline from the previous year’s net profit of Rupees 179.028 million.
• 📉 Sales decreased to Rupees 2,370.790 million in FY25 from Rupees 2,793.103 million in FY24.
• ⚠️ Auditors raised concerns about the company’s ability to continue as a going concern due to accumulated losses and liquidity issues.
• 🏭 The company’s gross profit decreased significantly from Rupees 421.932 million in FY24 to Rupees 133.009 million in FY25.
• 🙁 Profit/Loss before Levy & taxation went from a profit of 209.68 Million to a loss of (94.626) Million.
• 💸 The company is involved in litigation with Sukuk unit holders and certain financial institutions, impacting its financial stability.
• 🏦 Certain banks did not confirm short & long-term loan balances, creating uncertainty in the financial statements.
• ✔️ Pakistan’s textile exports are showing signs of recovery, attributed to a favorable global trade outlook.
• 🌍 The company is focusing on non-traditional markets due to economic headwinds in traditional destinations.
• 🚧 Management is actively pursuing debt restructuring and operational improvements.
• 🧵 The company stopped the operations of the processing division in previous years.
• 📜 The auditors have issued an adverse opinion on the financial statements.
• ⚖️ There were significant litigation with Sui Northern Gas Pipelines Limited that could negatively impact the financials.

🎯 Investment Thesis

Given the combination of substantial net losses, negative cash flow, auditor concerns and economic/legal uncertainties, a SELL recommendation is appropriate. AMTEX faces a challenging path forward. It’s unlikely for the company to significantly turn around in the current conditions. This recommendation is based on a need to reduce risk and protect capital. No particular price target is provided given current financial position, with a time horizon of short to medium term.