Lucky Cement Expands Iraq Operations with New Clinker and Grinding Lines

Karachi: Lucky Cement Ltd. has announced the successful commissioning of a new clinker line in Iraq, marking a significant expansion of its production capabilities in the region. The kiln of the clinker line, with a capacity of 1.82 million tons per annum (TPA), has been successfully fired, alongside plans for a new grinding line expansion of 0.65 million TPA in Samawah, Iraq.

According to estimates, the newly commissioned clinker line is expected to contribute approximately PkR1.8 to PkR2.1 per share to the company’s consolidated earnings for fiscal years 2026 and 2027. This projection is based on utilization levels of 70% and 80% respectively, and an exchange rate of PkR289 to PkR300 per US dollar.

The planned grinding unit in Samawah is set to complement the clinker line and is anticipated to add an additional PkR0.2 per share in fiscal year 2026 and PkR0.5 per share in fiscal year 2027. This development is projected to increase the target price by PkR2.1 per share, although it has not yet been factored into base valuations.

Previously, Iraq cement operations contributed PkR7.0 per share to Lucky Cement’s consolidated earnings for fiscal year 2024. With the commissioning of Iraq’s new clinker line, the company’s total capacity will rise to 21.5 million TPA, which includes an existing 1.7 million TPA grinding unit in Basra.

Following recent stock rallies, the outlook for Lucky Cement has been revised to ‘Neutral’. The potential for improvement in gross margins and gains in Lucky Electric Power Company Limited (LEPCL) appears to have been largely accounted for. The company maintains its December 2025 target price of PkR393 per share, suggesting a potential upside of 12% and a dividend yield of 1% during this period.