New Risk • May 02
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Over 9x increase in shares outstanding. This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-PK₨109m free cash flow). Share price has been highly volatile over the past 3 months (14% average weekly change). Earnings have declined by 11% per year over the past 5 years. Shareholders have been substantially diluted in the past year (over 9x increase in shares outstanding). Revenue is less than US$1m (PK₨246m revenue, or US$883k). Minor Risk Market cap is less than US$100m (PK₨14.0b market cap, or US$50.3m). Reported Earnings • Apr 30
Third quarter 2026 earnings released: PK₨0.33 loss per share (vs PK₨0.57 loss in 3Q 2025) Third quarter 2026 results: PK₨0.33 loss per share (improved from PK₨0.57 loss in 3Q 2025). Net loss: PK₨31.8m (loss narrowed 43% from 3Q 2025). Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 75% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 20
Dewan Farooque Spinning Mills Limited to Report Q3, 2026 Results on Apr 27, 2026 Dewan Farooque Spinning Mills Limited announced that they will report Q3, 2026 results on Apr 27, 2026 Reported Earnings • Mar 02
Second quarter 2026 earnings released: PK₨0.79 loss per share (vs PK₨0.66 loss in 2Q 2025) Second quarter 2026 results: PK₨0.79 loss per share (further deteriorated from PK₨0.66 loss in 2Q 2025). Net loss: PK₨77.7m (loss widened 21% from 2Q 2025). Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 15% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 19
Dewan Farooque Spinning Mills Limited to Report First Half, 2026 Results on Feb 26, 2026 Dewan Farooque Spinning Mills Limited announced that they will report first half, 2026 results on Feb 26, 2026 New Risk • Jan 22
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Pakistani stocks, typically moving 7.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-PK₨85m free cash flow). Earnings have declined by 16% per year over the past 5 years. Revenue is less than US$1m (PK₨219m revenue, or US$783k). Market cap is less than US$10m (PK₨617.8m market cap, or US$2.21m). Minor Risk Share price has been volatile over the past 3 months (7.7% average weekly change). Reported Earnings • Nov 01
First quarter 2026 earnings released: PK₨0.60 loss per share (vs PK₨0.91 loss in 1Q 2025) First quarter 2026 results: PK₨0.60 loss per share (improved from PK₨0.91 loss in 1Q 2025). Net loss: PK₨58.4m (loss narrowed 34% from 1Q 2025). Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 33% per year, which means it is well ahead of earnings. Reported Earnings • Oct 02
Full year 2025 earnings released: PK₨2.18 loss per share (vs PK₨3.92 loss in FY 2024) Full year 2025 results: PK₨2.18 loss per share (improved from PK₨3.92 loss in FY 2024). Net loss: PK₨213.3m (loss narrowed 44% from FY 2024). Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 42% per year, which means it is well ahead of earnings. Announcement • Oct 01
Dewan Farooque Spinning Mills Limited, Annual General Meeting, Oct 27, 2025 Dewan Farooque Spinning Mills Limited, Annual General Meeting, Oct 27, 2025. Location: karachi Pakistan New Risk • May 14
New major risk - Revenue size The company makes less than US$1m in revenue. Total revenue: PK₨254m (US$902k) This is considered a major risk. Companies with a small amount of revenue are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Earnings have declined by 20% per year over the past 5 years. Revenue is less than US$1m (PK₨254m revenue, or US$902k). Market cap is less than US$10m (PK₨300.1m market cap, or US$1.06m). New Risk • Mar 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Pakistani stocks, typically moving 8.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 19% per year over the past 5 years. Market cap is less than US$10m (PK₨357.8m market cap, or US$1.28m). Minor Risks Share price has been volatile over the past 3 months (8.0% average weekly change). Revenue is less than US$5m (PK₨362m revenue, or US$1.3m). Reported Earnings • Nov 08
Full year 2024 earnings released: PK₨3.92 loss per share (vs PK₨2.93 loss in FY 2023) Full year 2024 results: PK₨3.92 loss per share (further deteriorated from PK₨2.93 loss in FY 2023). Revenue: PK₨446.4m (down 8.6% from FY 2023). Net loss: PK₨383.1m (loss widened 34% from FY 2023). Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • Nov 08
Dewan Farooque Spinning Mills Limited, Annual General Meeting, Nov 28, 2024 Dewan Farooque Spinning Mills Limited, Annual General Meeting, Nov 28, 2024. Location: at dewan cement limted factory site, at deh dhando,dhando,dhabeji, district malir, karachi Pakistan New Risk • May 21
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -PK₨463k This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-PK₨463k free cash flow). Share price has been highly volatile over the past 3 months (8.6% average weekly change). Earnings have declined by 8.9% per year over the past 5 years. Market cap is less than US$10m (PK₨352.9m market cap, or US$1.27m). Minor Risk Revenue is less than US$5m (PK₨326m revenue, or US$1.2m). New Risk • Mar 12
New major risk - Revenue and earnings growth Earnings have declined by 3.9% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Earnings have declined by 3.9% per year over the past 5 years. Market cap is less than US$10m (PK₨324.5m market cap, or US$1.16m). Minor Risk Revenue is less than US$5m (PK₨318m revenue, or US$1.1m). New Risk • Oct 12
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -PK₨6.3m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-PK₨6.3m free cash flow). Share price has been highly volatile over the past 3 months (10% average weekly change). Market cap is less than US$10m (PK₨233.6m market cap, or US$838.9k). Minor Risk Revenue is less than US$5m (PK₨488m revenue, or US$1.8m). New Risk • Jun 27
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Pakistani stocks, typically moving 8.5% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (8.5% average weekly change). Market cap is less than US$10m (PK₨213.1m market cap, or US$746.1k). Minor Risk Revenue is less than US$5m (PK₨686m revenue, or US$2.4m). Reported Earnings • Mar 05
Second quarter 2023 earnings released: PK₨0.66 loss per share (vs PK₨0.29 loss in 2Q 2022) Second quarter 2023 results: PK₨0.66 loss per share (further deteriorated from PK₨0.29 loss in 2Q 2022). Revenue: PK₨177.6m (down 4.0% from 2Q 2022). Net loss: PK₨64.9m (loss widened 131% from 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Announcement • Jan 29
Dewan Farooque Spinning Mills Limited Appoints Syed Maqbool Ali as Chief Executive Officer Dewan Farooque Spinning Mills Limited announced that Syed Maqbool Ali has been appointed as Chief Executive Officer of the company with effect from January 27, 2023. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 6 non-independent directors. Independent Director Aziz ul-Haque was the last independent director to join the board, commencing their role in 2011. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 08
Full year 2022 earnings released: PK₨1.97 loss per share (vs PK₨1.15 loss in FY 2021) Full year 2022 results: PK₨1.97 loss per share (further deteriorated from PK₨1.15 loss in FY 2021). Revenue: PK₨694.2m (up 15% from FY 2021). Net loss: PK₨193.0m (loss widened 71% from FY 2021). Over the last 3 years on average, earnings per share has increased by 14% per year whereas the company’s share price has increased by 11% per year. Announcement • Jul 20
Dewan Farooque Spinning Mills Limited Announces Board Change Dewan Farooque Spinning Mills Limited informed Pakistan Stock Exchange that Mr. Abdul Basit has been appointed as Director of the company with effect from June 30, 2022 in place of Mr. Haroon Iqbal. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 6 non-independent directors. Independent Director Aziz ul-Haque was the last independent director to join the board, commencing their role in 2011. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 28
First quarter 2022 earnings released: PK₨0.57 loss per share (vs PK₨0.25 loss in 1Q 2021) The company reported a soft first quarter result with increased losses and weaker control over costs, although revenues improved. First quarter 2022 results: Revenue: PK₨149.5m (up 4.2% from 1Q 2021). Net loss: PK₨55.9m (loss widened 133% from 1Q 2021). Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Reported Earnings • Sep 28
Full year 2021 earnings released: PK₨1.15 loss per share (vs PK₨2.02 loss in FY 2020) The company reported a solid full year result with reduced losses, improved revenues and improved control over expenses. Full year 2021 results: Revenue: PK₨602.4m (up 40% from FY 2020). Net loss: PK₨112.6m (loss narrowed 43% from FY 2020). Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Executive Departure • Jun 02
Director has left the company On the 24th of May, Syed Abid Ali's tenure as Director ended after less than a year in the role. We don't have any record of a personal shareholding under Syed's name. A total of 3 executives have left over the last 12 months. Reported Earnings • Apr 29
Third quarter 2021 earnings released: PK₨0.15 loss per share (vs PK₨0.34 loss in 3Q 2020) The company reported a solid third quarter result with reduced losses, improved revenues and improved control over expenses. Third quarter 2021 results: Revenue: PK₨158.8m (up 21% from 3Q 2020). Net loss: PK₨14.4m (loss narrowed 57% from 3Q 2020). Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Executive Departure • Mar 16
Non-Executive Director has left the company On the 10th of March, Muhammad Jafferi's tenure as Non-Executive Director ended after 4.6 years in the role. As of December 2020, Muhammad personally held only 500.00 shares (PK₨1.3k worth at the time). Muhammad is the only executive to leave the company over the last 12 months. Announcement • Mar 14
Dewan Farooque Spinning Mills Limited Announces Board Changes Dewan Farooque Spinning Mills Limited announced that Syed Asim Abid Ali has been appointed as Director of the Company with effect from March 10, 2021 in place of Mr. Muhammad Baqar Jafferi. Is New 90 Day High Low • Feb 26
New 90-day high: PK₨3.06 The company is up 57% from its price of PK₨1.95 on 27 November 2020. The Pakistani market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 25% over the same period. Reported Earnings • Feb 24
Second quarter 2021 earnings released: PK₨0.58 loss per share (vs PK₨0.43 loss in 2Q 2020) The company reported a soft second quarter result with increased losses and weaker control over costs, although revenues improved. Second quarter 2021 results: Revenue: PK₨148.7m (up 8.6% from 2Q 2020). Net loss: PK₨57.0m (loss widened 34% from 2Q 2020). Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Jan 14
New 90-day high: PK₨3.01 The company is up 45% from its price of PK₨2.07 on 16 October 2020. The Pakistani market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 25% over the same period. Is New 90 Day High Low • Dec 23
New 90-day high: PK₨2.34 The company is up 24% from its price of PK₨1.89 on 24 September 2020. The Pakistani market is flat over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 10.0% over the same period. Reported Earnings • Oct 28
First quarter earnings released Over the last 12 months the company has reported total losses of PK₨169.7m, with losses narrowing by 28% from the prior year. Total revenue was PK₨456.6m over the last 12 months, down 4.6% from the prior year. Reported Earnings • Oct 09
Full year earnings released - PK₨2.02 loss per share Over the last 12 months the company has reported total losses of PK₨197.9m, with losses narrowing by 6.0% from the prior year. Total revenue was PK₨432.0m over the last 12 months, down 11% from the prior year. Reported Earnings • Oct 01
Full year earnings released - PK₨2.02 loss per share Over the last 12 months the company has reported total losses of PK₨197.9m, with losses narrowing by 6.0% from the prior year. Total revenue was PK₨432.0m over the last 12 months, down 11% from the prior year. 
