⚡ Flash Summary

Shaffi Chemical Industries Limited (SCIL) reported its quarterly financial results for the period ended September 30, 2025. The company has diversified into furniture manufacturing and trading to revive its business. SCIL generated revenue of Rs. 5.993 million from the furniture business. However, the company reported a loss after taxation of Rs. (0.580) million, compared to a profit of Rs. 0.766 million in the corresponding quarter of the previous year. The company is working to remove its name from the defaulters’ segment of the PSX to facilitate trading.

📌 Key Takeaways

• ✅ SCIL’s name is to be removed from the PSX’s defaulter segment to restore normal trading.
• ⚠️ The company reported a loss after taxation of Rs. (0.580) million for the quarter ended September 30, 2025.
• 📉 This compares negatively to the profit after taxation of Rs. 0.766 million in the same quarter last year.
• 💰 The company generated revenue of Rs. 5.993 million from its furniture business initiative.
• 🏢 Operating expenses were Rs. 0.483 million, and finance costs were Rs. 1.471 million.
• ⬆️ Authorized capital was increased from Rs. 120 million to Rs. 400 million for fundraising and equity expansion.
• 💼 SCIL is diversifying into furniture manufacturing and trading.
• 📜 Special resolutions were passed in an EOGM on April 19, 2025, to convert the principal line of business.
• 📑 Material information has been transmitted to PSX and SECP for approval.
• ✔️ Earnings per share (EPS) is Rs. (0.05) compared to Rs. 0.06 in the corresponding quarter of the previous year.
• 🏦 Total assets stand at Rs. 71.109 million as of September 2025.
• liabilities stand at Rs. 97.538 million.

🎯 Investment Thesis

Based on the current financial performance and risks, a HOLD recommendation is appropriate. The company’s efforts to revive its business through diversification into the furniture sector are a positive sign, but the current losses and negative equity create uncertainty. A price target of Rs. 5.00 based on future potential, with a MEDIUM_TERM horizon is assigned, contingent upon successful restructuring, earnings improvement, and removal from the defaulters’ segment.