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KARACHI: Lucky Cement Ltd. (LUCK) has announced a significant expansion at its joint venture company, Nyumba Ya Akiba, in the Democratic Republic of Congo. The expansion involves adding a 1.6 million tons per annum (TPA) fully integrated cement line, which will raise the total cement production capacity to 2.91 million TPA from the current 1.3 million TPA.
The company estimates that the new integrated line will contribute approximately PKR 1.7 and 4.4 per share to consolidated earnings in fiscal years 2028 and 2029, respectively. This projection assumes the line will be operational by mid-fiscal year 2028, with utilization levels at 70% and 85%, and an exchange rate of PKR 308 and 319 to the US dollar.
The Democratic Republic of Congo operations have already made a significant impact, contributing PKR 3.7 and 4.6 per share to Lucky Cement’s consolidated earnings in fiscal years 2023 and 2024, respectively.
AKD Securities Limited maintains a ‘BUY’ stance on LUCK’s stock, with a target price of PKR 558.6 per share by June 2026. The positive outlook is based on expected improvements in core margins, increased dividends from the power segment, and anticipated recovery in cyclical segments benefiting its subsidiaries.