Pakistan cements result previews – A tough year concludes

The Pakistan Cement Industry concluded one of its toughest years during FY20 with majority of the manufacturers expected to close in red. Prime reasons for eroding profitability include: 1) lower pricing amidst an expansion-driven price war, 2) Pak Rupee depreciation inflating energy costs, 3) high interest rates in tandem with a debt-heavy balance sheet, and… Continue reading Pakistan cements result previews – A tough year concludes

The Trapped Saviour: Cement Sector of Pakistan

In a Nutshell Pakistan is one of the most populous country in world with population figure over 200 million. Just as with other instances of over population, the concept of scarcity is applicable here as well, especially with regarding to housing. Currently, the housing shortage in the country is estimated around 10.4m out of which… Continue reading The Trapped Saviour: Cement Sector of Pakistan

Pioneer Cement (PIOC) – Timely expansion to capitalize recovering sector dynamics

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

Kohat Cement (KOHC) – Offers one of the best valuations in the sector

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