Cement Giants Report Strong Earnings Amid Rising Dispatches

Karachi: Maple Leaf Cement Factory Ltd (MLCF) and Lucky Cement Ltd (LUCK) are poised to announce significant earnings growth for the first quarter of the fiscal year 2026, driven by increased dispatches and improved margins. According to a report by JS Global, MLCF is projected to achieve a standalone earnings per share (EPS) of Rs2.36, marking a 2.4 times year-over-year increase. This growth is attributed to a 17% rise in domestic dispatches, a 5.5 percentage point improvement in gross margins, and a notable reduction in finance costs. On a consolidated basis, MLCF’s EPS is expected to reach Rs2.67, reflecting a 2.1 times increase from the previous year.

In contrast, Lucky Cement Ltd is also set to report robust growth, with standalone profitability expected to grow by 17% year-over-year. The company’s EPS is estimated at Rs5.25 per share, bolstered by a 10% increase in dispatches and a 2.4 percentage point improvement in gross margins. These gains are credited to lower coal prices and ongoing cost efficiencies. On a consolidated basis, Lucky’s EPS is projected at Rs14.65, representing a 20% year-over-year increase.

The report underscores a positive outlook for the cement sector, supported by a 15% rise in domestic dispatches during the first quarter of FY26, improved margins due to low coal prices, and reduced finance costs. Among the stocks analyzed, MLCF is highlighted as the top pick, with a target price of Rs140, indicating a 37% potential upside from current levels.