New Risk • May 11
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₨140m 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₨140m free cash flow). Earnings have declined by 46% per year over the past 5 years. Market cap is less than US$10m (PK₨297.5m market cap, or US$1.07m). Minor Risk Share price has been volatile over the past 3 months (11% average weekly change). Announcement • Apr 23
Ideal Spinning Mills Limited to Report Q3, 2026 Results on Apr 30, 2026 Ideal Spinning Mills Limited announced that they will report Q3, 2026 results on Apr 30, 2026 Reported Earnings • Mar 03
Second quarter 2026 earnings released: PK₨3.77 loss per share (vs PK₨14.78 loss in 2Q 2025) Second quarter 2026 results: PK₨3.77 loss per share (improved from PK₨14.78 loss in 2Q 2025). Revenue: PK₨259.6m (down 67% from 2Q 2025). Net loss: PK₨37.4m (loss narrowed 75% from 2Q 2025). Over the last 3 years on average, earnings per share has increased by 5% per year and the company’s share price has also increased by 5% per year. Announcement • Feb 20
Ideal Spinning Mills Limited to Report Q2, 2026 Results on Feb 27, 2026 Ideal Spinning Mills Limited announced that they will report Q2, 2026 results on Feb 27, 2026 Reported Earnings • Nov 01
First quarter 2026 earnings released: EPS: PK₨0.57 (vs PK₨5.33 loss in 1Q 2025) First quarter 2026 results: EPS: PK₨0.57 (up from PK₨5.33 loss in 1Q 2025). Revenue: PK₨356.9m (down 71% from 1Q 2025). Net income: PK₨5.66m (up PK₨58.6m from 1Q 2025). Profit margin: 1.6% (up from net loss in 1Q 2025). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Announcement • Oct 24
Ideal Spinning Mills Limited to Report Q1, 2026 Results on Oct 30, 2025 Ideal Spinning Mills Limited announced that they will report Q1, 2026 results at 9:30 AM, Pakistan Standard Time on Oct 30, 2025 Reported Earnings • Oct 03
Full year 2025 earnings released: PK₨42.70 loss per share (vs PK₨32.48 loss in FY 2024) Full year 2025 results: PK₨42.70 loss per share (further deteriorated from PK₨32.48 loss in FY 2024). Revenue: PK₨3.58b (down 36% from FY 2024). Net loss: PK₨423.6m (loss widened 31% from FY 2024). Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Announcement • Oct 01
Ideal Spinning Mills Limited, Annual General Meeting, Oct 28, 2025 Ideal Spinning Mills Limited, Annual General Meeting, Oct 28, 2025. Location: room no. 404 and 405, 4th floor, business centre, mumtaz hassan road, karachi Pakistan Announcement • Sep 23
Ideal Spinning Mills Limited to Report Fiscal Year 2025 Results on Sep 30, 2025 Ideal Spinning Mills Limited announced that they will report fiscal year 2025 results at 9:30 AM, Pakistan Standard Time on Sep 30, 2025 Reported Earnings • May 05
Third quarter 2025 earnings released: PK₨6.80 loss per share (vs PK₨6.79 loss in 3Q 2024) Third quarter 2025 results: PK₨6.80 loss per share (further deteriorated from PK₨6.79 loss in 3Q 2024). Revenue: PK₨969.6m (down 9.0% from 3Q 2024). Net loss: PK₨67.5m (flat on 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 55% per year but the company’s share price has only fallen by 30% per year, which means it has not declined as severely as earnings. New Risk • Oct 08
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₨120m 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₨120m free cash flow). Share price has been highly volatile over the past 3 months (12% average weekly change). Earnings have declined by 49% per year over the past 5 years. Market cap is less than US$10m (PK₨117.1m market cap, or US$421.2k). Reported Earnings • Oct 05
Full year 2024 earnings released: PK₨32.48 loss per share (vs PK₨55.85 loss in FY 2023) Full year 2024 results: PK₨32.48 loss per share (improved from PK₨55.85 loss in FY 2023). Revenue: PK₨5.56b (down 19% from FY 2023). Net loss: PK₨322.2m (loss narrowed 42% from FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 59 percentage points per year, which is a significant difference in performance. Announcement • Oct 02
Ideal Spinning Mills Limited, Annual General Meeting, Oct 28, 2024 Ideal Spinning Mills Limited, Annual General Meeting, Oct 28, 2024. Location: at room no : 404& 405, 4th floor,business centre, mamtaz hassan road, karachi Pakistan Board Change • May 20
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 3 experienced directors. 4 highly experienced directors. 2 independent directors (6 non-independent directors). Independent Director Rizwan ul Hassan was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • May 02
Third quarter 2024 earnings released: PK₨6.79 loss per share (vs PK₨7.90 loss in 3Q 2023) Third quarter 2024 results: PK₨6.79 loss per share (improved from PK₨7.90 loss in 3Q 2023). Revenue: PK₨1.07b (down 34% from 3Q 2023). Net loss: PK₨67.4m (loss narrowed 14% from 3Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 71 percentage points per year, which is a significant difference in performance. Board Change • Apr 19
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 3 experienced directors. 4 highly experienced directors. 2 independent directors (6 non-independent directors). Independent Director Rizwan ul Hassan was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Board Change • Mar 26
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 3 experienced directors. 4 highly experienced directors. 2 independent directors (6 non-independent directors). Independent Director Rizwan ul Hassan was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Board Change • Feb 21
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 3 experienced directors. 4 highly experienced directors. 2 independent directors (6 non-independent directors). Independent Director Rizwan ul Hassan was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Jan 05
Ideal Spinning Mills Ltd Appoints Muhammad Kashif Zahur as Chief Financial Officer Ideal Spinning Mills Ltd. has announced the appointment of Mr. Muhammad Kashif Zahur as the new Chief Financial Officer (CFO) of the company, effective from January 03, 2024. This strategic appointment is expected to bring new insights and strengthen the financial management of Ideal Spinning Mills Ltd. Mr. Zahur brings to the table a wealth of experience in financial management and strategic planning. His expertise is anticipated to be pivotal in guiding the financial operations of Ideal Spinning Mills Ltd, ensuring sustainable growth and financial stability. Mr. Zahur's leadership is expected to play a crucial role in the company's ongoing efforts to enhance financial performance and shareholder value. New Risk • Oct 08
New major risk - Revenue and earnings growth Earnings have declined by 19% 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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). Shares are highly illiquid. Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 19% per year over the past 5 years. Market cap is less than US$10m (PK₨168.6m market cap, or US$594.7k). Board Change • Oct 05
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 3 experienced directors. 4 highly experienced directors. 2 independent directors (6 non-independent directors). Independent Director Rizwan ul Hassan was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Board Change • Aug 02
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 3 experienced directors. 4 highly experienced directors. 2 independent directors (6 non-independent directors). Independent Director Rizwan ul Hassan was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Board Change • Jul 04
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 5 highly experienced directors. 2 independent directors (6 non-independent directors). Independent Director Muhammad Azhar was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Board Change • May 15
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 5 highly experienced directors. 2 independent directors (6 non-independent directors). Independent Director Muhammad Azhar was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Mar 04
Second quarter 2023 earnings released: PK₨26.57 loss per share (vs PK₨10.91 profit in 2Q 2022) Second quarter 2023 results: PK₨26.57 loss per share (down from PK₨10.91 profit in 2Q 2022). Revenue: PK₨1.55b (up 5.9% from 2Q 2022). Net loss: PK₨263.6m (down 344% from profit in 2Q 2022). Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has fallen by 4% per year. Board Change • Feb 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 2 experienced directors. 5 highly experienced directors. 2 independent directors (6 non-independent directors). Independent Director Muhammad Azhar was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Board Change • Nov 22
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 2 experienced directors. 5 highly experienced directors. 2 independent directors (6 non-independent directors). Independent Director Muhammad Azhar was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Oct 31
First quarter 2023 earnings released: PK₨9.93 loss per share (vs PK₨11.66 profit in 1Q 2022) First quarter 2023 results: PK₨9.93 loss per share (down from PK₨11.66 profit in 1Q 2022). Revenue: PK₨1.68b (up 17% from 1Q 2022). Net loss: PK₨98.5m (down 185% from profit in 1Q 2022). Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has only increased by 34% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Oct 12
Upcoming dividend of PK₨2.00 per share Eligible shareholders must have bought the stock before 19 October 2022. Payment date: 18 November 2022. Payout ratio is a comfortable 5.2% but the company is not cash flow positive. Trailing yield: 5.9%. Lower than top quartile of Pakistani dividend payers (12%). Higher than average of industry peers (4.7%). Board Change • Sep 28
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 2 experienced directors. 5 highly experienced directors. 2 independent directors (6 non-independent directors). Independent Director Muhammad Azhar was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 3 experienced directors. 4 highly experienced directors. 2 independent directors (6 non-independent directors). Independent Director Muhammad Azhar was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Board Change • Mar 22
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 3 experienced directors. 4 highly experienced directors. 2 independent directors (6 non-independent directors). Independent Director Muhammad Azhar was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Board Change • Jan 20
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 7 experienced directors. No highly experienced directors. 2 independent directors (6 non-independent directors). Independent Director Muhammad Azhar was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Board Change • Dec 23
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 7 experienced directors. No highly experienced directors. 2 independent directors (6 non-independent directors). Independent Director Muhammad Azhar was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Board Change • Dec 23
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 7 experienced directors. No highly experienced directors. 2 independent directors (6 non-independent directors). Independent Director Muhammad Azhar was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Board Change • Dec 08
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 7 experienced directors. No highly experienced directors. 2 independent directors (6 non-independent directors). Independent Director Muhammad Azhar was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Oct 08
Upcoming dividend of PK₨1.80 per share Eligible shareholders must have bought the stock before 15 October 2021. Payment date: 18 November 2021. Trailing yield: 3.5%. Lower than top quartile of Pakistani dividend payers (10%). In line with average of industry peers (3.6%). Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment improved over the past week After last week's 33% share price gain to PK₨42.10, the stock trades at a trailing P/E ratio of 2.1x. Average trailing P/E is 6x in the Luxury industry in Pakistan. Total returns to shareholders of 602% over the past three years. Reported Earnings • May 02
Third quarter 2021 earnings released: EPS PK₨11.55 (vs PK₨3.77 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: PK₨1.21b (up 18% from 3Q 2020). Net income: PK₨114.6m (up 207% from 3Q 2020). Profit margin: 9.4% (up from 3.6% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has only increased by 54% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 28
Second quarter 2021 earnings released: EPS PK₨2.29 (vs PK₨4.04 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: PK₨1.15b (up 11% from 2Q 2020). Net income: PK₨22.7m (down 43% from 2Q 2020). Profit margin: 2.0% (down from 3.9% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has only increased by 60% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Dec 24
New 90-day high: PK₨32.00 The company is up 45% from its price of PK₨22.00 on 22 September 2020. The Pakistani market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 9.0% over the same period. Valuation Update With 7 Day Price Move • Dec 21
Investor sentiment improved over the past week After last week's 16% share price gain to PK₨29.18, the stock is trading at a trailing P/E ratio of 2.1x, up from the previous P/E ratio of 1.8x. This compares to an average P/E of 8x in the Luxury industry in Pakistan. Total returns to shareholders over the past three years are 544%. Upcoming Dividend • Oct 08
Upcoming Dividend of PK₨1.30 Per Share Will be paid on the 17th of November to those who are registered shareholders by the 15th of October. The trailing yield of 5.7% is below the top quartile of Pakistani dividend payers (7.4%), but it is higher than industry peers (3.8%). 