Strength-7

⚡ Flash Summary

Feroze1888 Mills Limited’s corporate briefing session for 2025 reveals a challenging financial performance. Revenue has decreased by 5.23% from PKR 70 billion in FY’24 to PKR 66 billion in FY’25. Profit after tax (PAT) suffered a significant drop of 82.70%, falling from PKR 0.6 billion to PKR 0.09 billion. EBITDA also declined by 15.92%, decreasing from PKR 8.1 billion to PKR 6.8 billion.

📌 Key Takeaways

• 📉 Revenue decreased by 5.23% from PKR 70Bn (FY’24) to PKR 66Bn (FY’25).
• 📉 Profit After Tax (PAT) plummeted by 82.70%, dropping from PKR 0.6Bn to PKR 0.09Bn.
• 📉 EBITDA declined by 15.92%, from PKR 8.1Bn to PKR 6.8Bn.
• 🌿 The company planted 170,000+ trees for climate change.
• ☀️ Solar energy generation increased by 300% compared to FY’22.
• 💧 Water saving projects reported 289,253+ gallons saved per day.
• 👩‍💼 Female employee strength increased by 56%.
• 💰 Investment in CSR activities reached PKR 33.5 million.
• 🤝 Sponsored 22 marriages of female employees/workers.
• 📉 Cotton prices saw a decrease of 4.8%.
• 📉 Finance cost decreased by 13%.
• ⬆️ Gas rates increased by 37%.
• ⬆️ Salaries and wages increased by 15.6%.
• 🏆 Received Women Empowerment & Gender Equality Recognition Award 2025.

🎯 Investment Thesis

Based on the declining financial performance and profitability, a SELL recommendation is warranted for Feroze1888 Mills Limited. The company faces significant headwinds in terms of revenue growth and profitability, which are unlikely to be resolved in the near term. I am setting a price target 20% lower than current share price, with a medium term (6-12 months) investment horizon, accounting for the negative trends and associated risks.