LUCK reported a consolidated PAT of PKR 48,031mn for 1HFY26,

AHL Research has released a report on Lucky Cement Limited, covering financial results for 1HFY26. LUCK reported a consolidated PAT of PKR 48,031mn for 1HFY26, reflecting a 10% YoY increase, with EPS of PKR 30.45 per share. Earnings grew 13% YoY during the period, driven primarily by the strong performance of local cement operations, which increased by 8% YoY. In addition, foreign cement operations continued to support profitability, while the automobile and mobile phone segments recorded an improvement in volumes.

Result Highlights

• Net revenue for 1HFY26 stood at PKR 247,086mn, marking a 10% YoY increase. The growth was primarily driven by higher sales from the Local Cement, Automobile, and Mobile Phone segments. While Animal Health (+20%) and Pharmaceuticals (+10%) posted turnover growth, turnover from Polyester (-24%), Soda Ash (-8%), and Chemicals & Agri Sciences (-8%) businesses declined during the 1HFY26.

• Gross Margins in 1HFY26 are recorded at 25% compared to 29% in 1HFY25.

• Other Income increased by 23% YoY to PKR 11,931mn in 1HFY26. Increase in other income is mainly due to higher short-term investments.

• In 2QFY26, the cash and short-term investment position of the company stands at PKR 174,884mn compared to PKR 130,751mn in 2QFY25.

• Finance costs in 1HFY26 declined by 35% YoY to PKR 9,666mn. The reason for lower finance costs is lower interest rates.

• Effective tax rate in 1HFY26 arrives at 19% compared to 20% in 1HFY25.

Recommendation

We maintain a Buy call on LUCK, with a TP of PKR 620/share, implying a 30% upside from the (LDCP). The stock is currently trading at forward FY26/FY27 multiples of 7.4x/6.4x P/E and 1.6x/1.3x P/B, with dividend yields of 1.0%/1.2%, respectively.