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SELL - FoxLogica

SELL

📉 Market News: News Analysis – 2025-10-08 (2025-10-08)

📊 Market Impact Analysis

Govt resists Rs200b circular debt cap which will affect the liquidity and profitability of the energy sector.

🏭 Affected Sectors

Energy

🏢 Companies in Focus

Mentioned in News: N/A

Potentially Affected: N/A

Disclaimer: AI-generated from public news. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 8, 2025

📉 Market News: News Analysis – 2025-10-08 (2025-10-08)

📊 Market Impact Analysis

Floods dampening Pakistan’s growth outlook will negatively affect various sectors, especially agriculture, and consumer-related industries. Insurance sector can be positively affected.

🏭 Affected Sectors

Economy

🏢 Companies in Focus

Mentioned in News: N/A

Potentially Affected: N/A

Disclaimer: AI-generated from public news. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 8, 2025

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

⚡ Flash Summary

Dandot Cement Company Limited reported financial results for the year ended June 30, 2025. The company experienced a significant loss after taxation of PKR 153.14 million, a stark contrast to the profit of PKR 20.43 million in the prior year. Net sales increased substantially to PKR 6,344.18 million from PKR 2,456.36 million. However, increased finance costs and other operating expenses contributed to the overall loss. The company did not declare any cash dividend, bonus issue, or right shares for the year.

Signal: SELL 📉
Strength: 8/10
Sentiment: NEGATIVE
Time Horizon: MEDIUM_TERM

📌 Key Takeaways

  • ❌ Dandot Cement reported a loss after taxation of PKR 153.14 million for FY2025, compared to a profit of PKR 20.43 million in FY2024.
  • 📈 Net sales increased significantly to PKR 6,344.18 million from PKR 2,456.36 million, indicating strong revenue growth.
  • 💸 Finance costs surged to PKR 652.16 million from PKR 392.91 million, heavily impacting profitability.
  • 📉 Basic earnings per share (EPS) turned negative, with a loss of PKR 0.48 per share compared to earnings of PKR 0.08 per share in the previous year.
  • 💰 No cash dividend was declared for the year ended June 30, 2025.
  • 🚫 No bonus issue or right shares were recommended by the Board of Directors.
  • 📊 Operating profit increased to PKR 519.27 million from PKR 122.23 million.
  • ⚠️ Other operating expenses resulted in an expense of PKR 16.74 million, compared to an income of PKR 3.06 million in the previous year.
  • 🏦 Long-term financing from banking companies decreased slightly to PKR 2,711.89 million from PKR 2,811.73 million.
  • 🧾 Trade and other payables decreased to PKR 1,377.37 million from PKR 1,667.37 million.
  • 📉 Total comprehensive loss for the year was PKR 153.14 million, contrasting with a comprehensive income of PKR 1,083.43 million in the prior year.
  • 🚧 Capital work in progress saw a slight decrease, reported at PKR 10.46 million versus PKR 10.54 million in the previous year.
  • 🏦 Cash and bank balances increased significantly to PKR 170.60 million from PKR 21.72 million.
  • 📉 Accumulated losses increased to PKR 5,724.00 million from PKR 5,669.65 million.

🎯 Investment Thesis

Based on the reported loss, increased finance costs, and negative EPS, a SELL recommendation is warranted for Dandot Cement. The company’s high debt burden and operational inefficiencies raise concerns about its ability to sustain profitability. While net sales have increased, the overall financial performance does not justify a BUY or HOLD rating. Price Target: PKR 5.00. Time Horizon: Medium Term.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 8, 2025

📉 YOUW: SELL Signal (8/10) – YOUW | Yousaf Weaving Mills Limited Transmission of Annual Report for the year Ended 30-06-2025

⚡ Flash Summary

Yousaf Weaving Mills Limited (YOUW) reported a challenging year, with a significant shift from a gross profit to a substantial gross loss, primarily due to rising production costs and reduced sales volumes. The company incurred a net loss of Rs. 306.713 million, a stark contrast to the previous year’s loss of Rs. 49.205 million. Despite these difficulties, management remains confident in the company’s ability to continue as a going concern, citing successful renegotiations of financing arrangements and cost rationalization measures. The board has initiated a BMR plan and received financial support from sponsors to address liquidity issues and improve operational efficiency. Investors should exercise caution and closely monitor the company’s performance and restructuring efforts.

Signal: SELL 📉
Strength: 8/10
Sentiment: NEGATIVE
Time Horizon: SHORT_TERM

📌 Key Takeaways

  • ❌ YOUW recorded a gross loss of Rs. 254.473 million, a significant drop from the previous year’s gross profit of Rs. 3.050 million.
  • 📉 The company’s net loss surged to Rs. 306.713 million, compared to a net loss of Rs. 49.205 million in the prior year.
  • 🏭 Production costs increased sharply, leading to reduced capacity utilization and lower sales volumes.
  • 🤝 Management successfully renegotiated and restructured major financing arrangements with lending banks.
  • ✅ Regular installment payments are now being made to the Bank of Punjab.
  • 👍 Restructuring with the National Bank of Pakistan has been finalized and implemented.
  • 💬 Negotiations with the remaining financial institution are at an advanced stage and expected to conclude favorably.
  • 💲 Sponsors and directors injected Rs. 81 million during the current year to meet liquidity requirements.
  • 🔄 A Balancing, Modernization and Replacement (BMR) plan has been initiated to improve production efficiency.
  • 🌱 The company had no female employees on the payroll during the year, emphasizing the need for increased gender diversity.
  • ⚠️ Statutory auditors have highlighted material uncertainty regarding the company’s ability to continue as a going concern.
  • 📅 The 38th Annual General Meeting will be held on October 28, 2025, to adopt the audited accounts and appoint auditors.
  • 🚫 No gifts, hampers, or giveaways will be distributed at the upcoming Annual General Meeting, complying with SECP directives.
  • 💻 Financial statements for the year ended June 30, 2025, will be uploaded on the company’s website 21 days prior to the AGM.
  • 🔒 Share transfer books for ordinary shares will be closed from October 21-28, 2025.

🎯 Investment Thesis

Given the substantial losses, material uncertainty regarding going concern, and weakened financial standing, a SELL recommendation is warranted for YOUW. The company’s restructuring efforts and potential BMR plan might offer some upside, but these are not yet reflected in improved financial performance. A price target cannot be accurately assessed currently due to these uncertainties and the lack of detailed future projections. Any time horizon is speculative.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 7, 2025

📉 FNEL: SELL Signal (8/10) – Transmission of Annual Report for the Year Ended REVOKED

⚡ Flash Summary

First National Equities Limited (FNEL) reported a loss after tax of PKR 78.68 million for the year ended June 30, 2025, a significant decrease from the profit of PKR 497.90 million in 2019. Gross revenue decreased substantially to PKR 19.75 million compared to PKR 23.48 million in 2024 and PKR 6.75 million in 2019. The company’s operations were temporarily affected by transitioning its license framework, which involved a trading closure in September 2024 and a resumption in June 2025. Despite the losses, FNEL is pursuing strategic growth opportunities, including investments in its subsidiary and diversification into the pharmaceutical sector.

Signal: SELL 📉
Strength: 8/10
Sentiment: NEGATIVE
Time Horizon: SHORT_TERM

📌 Key Takeaways

  • 📉 FNEL reported a loss after tax of PKR 78.68 million in 2025, a sharp reversal from a profit of PKR 497.90 million in 2019.
  • 📉 Gross revenue significantly decreased to PKR 19.75 million in 2025 from PKR 23.48 million in 2024.
  • ⚠️ Operating revenues decreased to PKR 8.56 million in 2025 from PKR 33.92 million in 2024.
  • ⛔️ Administrative expenses remained high at PKR 41.77 million despite reduced revenue.
  • 🏦 The company is transitioning its license framework, causing a trading halt in September 2024.
  • ✅ Operations resumed in June 2025 under a trading-only broker status.
  • 💰 FNEL is pursuing strategic growth opportunities, including investments in its subsidiary FNE Developments.
  • 💊 The company intends to diversify into the pharmaceutical sector, potentially investing up to PKR 500 million.
  • 🏢 The KSE-100 Index closed June 2025 at a historic high, but FNEL experienced volatility.
  • 💼 The company divested its 20% equity stake in Kingbhai Digisol for PKR 280 million.
  • 🚫 Auditors highlight non-compliance with corporate governance regulations, including vacant key positions.
  • Chairman mentions FY2026 GDP growth of 3.6%, an improvement compared to -0.4% the year before

🎯 Investment Thesis

Based on the current financial performance and highlighted risks, a SELL recommendation is appropriate for FNEL. The company faces significant challenges related to the temporary operations closure. A turnaround is uncertain, and the lack of profitability makes investment unattractive. Even though the divestiture from Digisol could eventually have a positive impact, the investment comes with a high amount of uncertainty in the near term. The risks associated with the regulatory compliance and operational efficiency remain significant

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 7, 2025

📉 FNEL: SELL Signal (7/10) – Transmission of Annual Report for the Year Ended

⚡ Flash Summary

First National Equities Limited (FNEL) reported losses for the year ended June 30, 2025, with a loss after tax of Rs. 78.68 million compared to a loss of Rs. 51.47 million in the previous year. Operating revenue significantly decreased to Rs. 8.56 million from Rs. 33.92 million, influenced by a temporary trading closure and market volatility. The company is strategically pivoting towards new investments and pharmaceutical diversification to broaden its revenue base. Despite the losses, FNEL highlights its compliance with corporate governance standards and future growth prospects through strategic initiatives.

Signal: SELL 📉
Strength: 7/10
Sentiment: NEGATIVE
Time Horizon: MEDIUM_TERM

📌 Key Takeaways

  • 📉 Loss after tax increased to Rs. 78.68 million in 2025 from Rs. 51.47 million in 2024.
  • Revenue plummeted to Rs. 8.56 million from Rs. 33.92 million YoY. 📉
  • Sale of investment resulted in gain of Rs.6.31 million compared to loss of Rs.6.05 million YoY. 💰
  • Unrealized gain on investments saw an increase of Rs.4.88 million compared to loss of Rs.4.38 million YoY.📈
  • Administrative expenses are down to Rs. 41.77 million compared to Rs. 76.83 million YoY. ✅
  • Finance costs increased slightly to Rs. 25.30 million from Rs. 24.06 million. ⬆️
  • Other income decreased to Rs. 35.37 million compared to Rs. 42.37 million YoY. 🔻
  • KSE-100 Index closed June 2025 at 125,000 points, a 60% increase for FY25. 🚀
  • Remittances reached a record US$38 billion in FY25, a 27% increase YoY. 💸
  • The Company is exploring investment opportunities in its subsidiary, FNE Developments. 🏢
  • Intends to diversify into the pharmaceutical sector with up to PKR 500 million in investments. 💊
  • The company divested its 20% equity stake in Kingbhai Digisol for PKR 280 Million. 🤝
  • Auditors have identified non-compliance issues including lack of Director Training. ⚠️
  • Remuneration to Directors is provided according to policy guidelines. 💼

🎯 Investment Thesis

Given financial performance and risk factors, I recommend a SELL signal. The company is not profitable and has a variety of challenges to address. The company has non-compliance issues that must be resolved. I believe the price will continue to decline and I suggest a time horizon of medium term.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 7, 2025

📉 SGPL: SELL Signal (8/10) – Financial Results for the Year Ended 2025-06-30

⚡ Flash Summary

SG Power Limited (SGPL) reported disappointing financial results for the year ended June 30, 2025, with a significant loss of PKR 8.405 million compared to a profit of PKR 1.668 million in the previous year. The primary driver for this downturn was a substantial decrease in sales of electricity, dropping from PKR 17.302 million to PKR 6.146 million. This decline in revenue, coupled with high generation and operating costs, resulted in a substantial operating loss. The company did not recommend any cash dividend, bonus shares, or right shares for the year.

Signal: SELL 📉
Strength: 8/10
Sentiment: NEGATIVE
Time Horizon: SHORT_TERM

📌 Key Takeaways

  • 📉 SGPL reported a net loss of PKR 8.405 million for FY2025, a sharp reversal from a profit of PKR 1.668 million in FY2024.
  • ⚡ Sales of electricity plummeted by 64.5% YoY, from PKR 17.302 million in FY2024 to PKR 6.146 million in FY2025.
  • 💰 Generation costs remained high at PKR 7.932 million, contributing significantly to the gross loss.
  • ❌ No cash dividend, bonus shares, or right shares were recommended for the fiscal year.
  • 🏢 Operating loss stood at PKR 8.401 million, a stark contrast to the operating profit of PKR 1.670 million in the previous year.
  • 💸 Administrative and selling expenses surged to PKR 6.615 million, impacting overall profitability.
  • 📉 Loss per share amounted to PKR 0.47, compared to earnings per share of PKR 0.094 in FY2024.
  • 🏦 Cash and bank balances marginally increased from PKR 2,536 to PKR 3,273.
  • liabilities increased substantially, driven by amounts due to associated undertakings, more than tripling from PKR 2.953 million to PKR 9.317 million.
  • ⬆️ A loan from the director increased from PKR 593,262 to PKR 1.913 million, indicating increased reliance on internal financing.
  • ⚠️ Accumulated losses worsened, increasing from PKR 258.374 million to PKR 266.778 million.

🎯 Investment Thesis

Given the severe financial downturn, characterized by significant losses, plummeting revenue, and increasing reliance on debt, a **SELL** recommendation is warranted for SG Power Limited. The price target will depend on a thorough analysis of the company’s assets, liabilities, and potential turnaround strategies, but currently, the financial performance does not justify investment. The time horizon is **SHORT_TERM** due to the immediate financial concerns.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 7, 2025

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

⚡ Flash Summary

Ruby Textile Mills Limited’s annual report for the year ended June 30, 2025, reveals continued operational challenges and financial strain. The company’s operations remained closed, resulting in a loss after taxation of Rs. 24.962 million, although this is an improvement from the previous year’s Rs. 45.245 million. The auditor’s report expresses concerns about the company’s ability to continue as a going concern. Management is actively exploring avenues to revive operations, including restructuring bank debts and seeking financial support to increase the mill productivity.

Signal: SELL 📉
Strength: 8/10
Sentiment: NEGATIVE
Time Horizon: SHORT_TERM

📌 Key Takeaways

  • ❌ Operations remained closed during the year, continuing the trend from the previous year.
  • 📉 Loss after taxation was Rs. 24.962 million, an improvement from Rs. 45.245 million in 2024.
  • ⚠️ Auditor’s report includes an adverse opinion regarding the company’s ability to operate as a going concern.
  • 💰 Accumulated losses stand at Rs. 936.64 million.
  • 💸 Current liabilities exceed current assets by Rs. 141.85 million.
  • 👍 Management is working on restructuring bank debts to help raise working capital.
  • 🏦 Seeking financial support from banks and sponsors to restart production.
  • 🇵🇰 Devaluation of Pakistani Rupee impacted imported raw material and machinery costs.
  • 🌐 The company is working on alternative approaches, either operating Unit-II on a lease basis or having the unit-I operated by the company itself.
  • 💼 The company is determined to improve cost-effective measures and cost-saving efforts in the future.
  • 📅 AGM is scheduled for October 24, 2025.
  • 🚫 No final dividend has been proposed.

🎯 Investment Thesis

Based on the continuing operational challenges, adverse auditor opinion, and high accumulated losses, a SELL recommendation is appropriate. There’s significant uncertainty regarding the company’s turnaround prospects. The company faces substantial financial risks, and therefore, investment in RUBY should be avoided.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 7, 2025

📉 CWSM: SELL Signal (8/10) – Transmission of Annual Accounts For Year Ended June 30, 2025

⚡ Flash Summary

Chakwal Spinning Mills Limited reported a net loss after tax of Rs. 117.727 million for the year ended June 30, 2025, compared to a loss of Rs. 121.746 million in the previous year. The company’s operations have been suspended since 2019 due to severe business losses and economic downturn. Management is exploring viable avenues for revival, focusing on diversifying into information technology and cloud-based businesses. The company’s ability to continue as a going concern is dependent on securing regulatory approvals and successfully executing its IT-focused diversification plan.

Signal: SELL 📉
Strength: 8/10
Sentiment: NEGATIVE
Time Horizon: LONG_TERM

📌 Key Takeaways

  • 📉 Chakwal Spinning Mills reported a net loss of Rs. 117.727 million for FY2025, slightly improved from Rs. 121.746 million in FY2024.
  • 🏭 Operations have been suspended since 2019 due to significant business losses and economic challenges.
  • 💻 The company is shifting focus towards IT and cloud-based businesses for revival.
  • 📜 Regulatory approvals are pending for the company’s transformation plan.
  • 🌐 A key strategy involves establishing Pakistan’s first cloud data center, targeting a USD 750 million market opportunity.
  • 🤝 An agreement with Intermarket Securities Limited (ISL) is in place to raise PKR 1.0 billion through equity injections.
  • 🤔 Auditors have emphasized uncertainty about the company’s ability to continue as a going concern.
  • ⚠️ The company acknowledges auditors’ emphasis on going concern
  • 🏦 The company is involved in litigation with lenders, with unpaid markup since June 2019.
  • 🧾 Tax authorities have demanded Rs. 4.871 million, against which appeals are filed.
  • 🚧 Auditors qualified the opinion due to contingent liabilities, non-accrued interest, and deferred taxation.
  • 🌱 The board believes in integrating Corporate Social Responsibility into its business.
  • 🏢 The Board of Directors fixed the number of directors to seven.

🎯 Investment Thesis

SELL: Given the company’s persistent losses, suspended operations, heavy debt burden, uncertainty regarding regulatory approvals, and reliance on a high-risk turnaround strategy into the IT sector, a SELL recommendation is appropriate. The company is facing material uncertainty related to going concern, which is a significant red flag for investors.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 7, 2025

📉 DBSL: SELL Signal (8/10) – DBSL | Dadabhoy Sack Limited Financial Results for the Year Ended 2025-06-30

⚡ Flash Summary

Dadabhoy Sack Limited (DBSL) reported financial results for the year ended June 30, 2025. The company’s financial performance remained weak, with no sales reported for both 2024 and 2023. The company continues to report significant operating losses. The announcement also stated that no cash dividend, bonus certificates, or right certificates were recommended.

Signal: SELL 📉
Strength: 8/10
Sentiment: NEGATIVE
Time Horizon: SHORT_TERM

📌 Key Takeaways

  • ❌ No sales reported for the year ended June 30, 2025, similar to the previous year.
  • 📉 Operating loss of (3,306,202) Rupees in 2024, a slight improvement from (3,627,408) Rupees in 2023.
  • 💸 Administrative expenses amounted to (3,306,202) Rupees in 2024, compared to (3,627,408) Rupees in 2023.
  • ⛔ No cash dividend was recommended by the board.
  • 📜 No bonus certificates were recommended.
  • ✔️ No right certificates were recommended.
  • 😔 Loss before taxation was (3,306,202) Rupees in 2024, compared to (3,627,408) Rupees in 2023.
  • 👍 Taxation benefit decreased from 1,051,948 Rupees in 2023 to 614,287 Rupees in 2024.
  • 📉 Loss after taxation was (2,691,915) Rupees in 2024, compared to (2,575,460) Rupees in 2023.
  • 📉 Basic and diluted loss per share was (0.67) Rupees in 2024, compared to (0.64) Rupees in 2023.

🎯 Investment Thesis

Given the consistent lack of revenue, significant operating losses, and negative EPS, a SELL recommendation is warranted for DBSL. There is no clear path to profitability, and the company’s long-term viability is questionable. A price target cannot be reasonably established due to the lack of financial performance indicators. Time horizon: Immediate.

View Original PDF

Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 7, 2025

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