As of September 6, 2025 when the stock closed at PKR 466.18
Welcome to your deep dive into Pakistan's corporate giants! In this episode, we shine a spotlight on Lucky Cement Limited (LUCK), a powerhouse that's much more than just a cement manufacturer. As Pakistan's largest cement producer with a substantial 15.3 MTPA capacity, LUCK has strategically diversified, building a formidable presence across critical sectors like automobiles, agriculture, chemicals, pharmaceuticals, and power, truly living up to its vision of wealth creation and national development.
For the fiscal year ended June 30, 2025, LUCK reported impressive consolidated financial results: Net Revenue climbed to PKR 449.6 billion, Profit After Tax (PAT) reached a robust PKR 84.5 billion (with PKR 77.0 billion attributable to shareholders), and Earnings Per Share (EPS) stood strong at PKR 52.53. This exceptional performance was supported by a final cash dividend of PKR 4 per share. Key drivers included Lucky Motor Corporation's 48% year-on-year growth in automobile volumes, and Lucky Core Industries' solid operating performance of PKR 18 billion, significantly boosted by strategic acquisitions such as Pfizer assets. Furthermore, cement export volumes surged by an impressive 53%, leveraging global demand and LUCK's expansion into new international markets, including the commissioning of a new clinker line in Samawah, Iraq.
LUCK is not just focused on financial metrics; it's a leader in digital transformation and sustainability. The company is actively integrating 13 UN Sustainable Development Goals into its business practices, with a strong emphasis on environmental stewardship, such as water conservation and community development. They've also commissioned a 28.8 MW wind power project and expanded solar power, enhancing their renewable energy footprint. The company's continuous pursuit of new growth avenues is evident in its approval of up to PKR 1.2 billion in further investment in the National Resources (Private) Limited (NRL) mining venture, following a copper-gold mineralization discovery in Balochistan.
However, LUCK navigates a dynamic environment with both opportunities and challenges. The automotive segment faces evolving policy shifts towards electric vehicles (EVs) and increased taxes on smartphone imports, alongside growing competition. The power sector continues to contend with systemic issues like circular debt and transmission constraints.
The investment community holds diverse views on LUCK's valuation. While some analysts maintain "Buy" or "Hold" recommendations, seeing an intrinsic value potentially up to PKR 500-550 per share, based on strong fundamentals and growth potential, others lean towards an "Avoid" verdict, citing intrinsic values around PKR 258-320. These more conservative assessments often incorporate higher Weighted Average Cost of Capital (WACC), explicit conglomerate discounts, and a strong emphasis on Pakistan's macroeconomic and currency risks for USD-based investors. This analysis is particularly relevant when comparing LUCK to its peers in the Pakistan cement sector, such as D.G. Khan Cement (DGKC), Maple Leaf Cement (MLCF), Cherat Cement (CHCC), Fauji Cement (FCCL), and Pioneer Cement (PIOC), which often trade at different multiples reflecting their individual risk profiles and market positions.
Shareholders are scheduled to convene on September 26, 2025, at the Annual General Meeting to approve the recommended dividend and further investment in NRL.
Tune in to unravel the complexities and potential of Lucky Cement, a company at the forefront of Pakistan's economic transformation.
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