Category: Cement

We initiate our coverage of Pioneer Cement (PIOC) with a Jun21 TP of PKR 87/sh, offering an upside 34% based on its last close of 64/sh. Our optimism towards the stock’s performance is underpinned upon: 1) recovering sector dynamics with anticipation of a recovery in demand, 2) timely capacity expansion to benefit from the anticipated… Continue reading Pioneer Cement (PIOC) – Timely expansion to capitalize recovering sector dynamics

We initiate our coverage of Kohat Cement (KOHC) with a Jun21 Target Price of PKR 189/sh, offering an upside 31%. Our preference for the stock is based on: 1) improving cement sector dynamics likely materializing in demand recovery, 2) timely expansion to capitalize on improving sector dynamics, 3) lower global energy prices to ease production… Continue reading Kohat Cement (KOHC) – Offers one of the best valuations in the sector

Lucky Cement Limited (LUCK) announced its financial results earlier today, posting earnings of PKR 2,935mn (EPS: PKR 9.08) during 9MFY20, down 65% YoY compared with earnings of PKR 8,294mn (EPS: PKR 25.65) registered during 9MFY19. On a quarterly basis, earnings dipped by 64% YoY to PKR 999mn (EPS: PKR 3.09) during 3QFY20. Earnings attrition can… Continue reading LUCK – Lower retention subdues profitability during 3Q

Based on channel checks, cement manufacturers have come to a consensus over the industry’s pricing levels, agreeing to hike domestic prices by PKR 50/bag. This hike is anticipated to be effective tomorrow and will likely take domestic prices to PKR 550/bag. This increase comes ahead of the projected acceleration in construction activity subsequent to the… Continue reading Consensus achieved over PKR 50/bag hike in cement prices