Cement: 3Q Seems to be Dull, 4Q Shaping up Well - By Sherman Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Cement sector has been in limelight as the sector rallied by 19% during last two months as investors generally believe that falling coal prices bodes well for the sector (down 11% since last two months).</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">In Pakistan, coal is mainly consumed by cement plants, both as a fuel and power source which together constitute around 40% of the cement cost. Thus, any variation in coal prices has major implication on earnings of cement manufacturers. However, we believe that impact of declining coal prices may not be visible in earnings of north-based cement plants during 3QFY25 as they passed on the impact to general consumers by reducing cement prices (avg. pr...