Suite #001
Business Finance Centre
I.I Chundrigar Road
Karachi.
Ph: 021-2440xxx
Sample Securities (Pvt.) Ltd
Corporate Member Karachi Stock Exchange (G) Ltd
Saturday
May 31 ‘08
Research Analyst
M. Faisal Panawala
Cell: 0321-2956003
fpanawala@hotmail.com
RESEARCH REPORT ON
CEMENT SECTOR
FOCUSING
LUCKY CEMENT LTD
Content
Particulars
Page No.
01
Overview – Cement Sector
Future Outlook – Sales & Growth…………......... 1
Hike in Cost……………………………………... 1
Export Demand & Expansions………………….. 1
Final Word…………………………………......... 2
02
Lucky Cement Limited
Expansions…………………………………......... 3
Exports…………………………………………... 3
Operation Results………………………………... 3
LUCK Highlights………………………………... 3
GDR Issue of US$ 109.3mn…………………….. 3
Recommendation………………………………... 4
03
Pivot Analysis……………………………………… 5
This report has been prepared by Sample Securities (Pvt) Ltd – (SSPL) and is provided for information
purposes only. As a result, investors should consider this report as a single factor in making their
investment decisions with out undue reliance on this report and the company accepts no responsibility
whatsoever for any direct or indirect consequential loss arising from any use of this report or its
contents. The views expressed are of research department & do not necessarily reflect those of SSPL
directors.
Industry Overview
Future Outlook – Sales & Growth
The robust growth of 32% cement demand both in domestics
and export markets during FY ‘07, continued as cumulative
dispatches for 10 months FY ’08 showed an increase of 25%.
Total domestic consumption grew by 1% YoY while exports
grew by whopping 157% YoY.
Hike in Cost
The industry debt to asset ratio is 60%, the recent volatility in
interest rates is likely to affect the finance cost significantly.
However companies including DGKC, LUCK & MLCF