Pakistan Cement: Sector Earnings Revised Upward; Buy Stance Maintained - By Topline Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We have revised up our earlier estimates of cement earnings by simple average of 23-28% for FY25 and FY26 due to multiple factors including better than expected domestic demand recovery in FY25, and lower coal costs.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Better than expected domestic dispatches: In 1QFY25 local cement dispatches decreased by ~20% YoY and by 7% QoQ to 8.1mn tons. This decrease was mainly due to sudden jump in bag prices mainly caused by increase in FED per bag to Rs4 from Rs2. Other main reason was strikes by cement dealers due to taxation measures introduced in FY25 budget.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">In ...