- Cement dispatches for Jan’25 clocked in at 3.9mn tons, an increase of 14%YoY, driven by 12%/30%YoY growth in local and export offtakes, respectively.
- We expect sector profitability to remain higher, with ease in coal prices to largely offset the cost pressures.
- We expect FY25E cement offtakes to decline by 2-5%YoY, driven by a 6%YoY contraction in local dispatches, while exports are expected to rise.
- Our preferred picks from the sector remain LUCK & FCCL with Dec’25 target prices of PkR1,965/sh and PkR61/sh, respectively.
Courtesy – AKD Research