Lucky Cement Predicts Moderate Cement Demand Growth Despite Recent Dispatch Surge

Islamabad: Lucky Cement Ltd (LUCK) anticipates modest cement demand expansion in FY26, projecting a 5% rise despite a recent increase in cement shipments. The corporation conveyed this conservative outlook during its Corporate Briefing, where it reviewed FY25 results and future projections.

The cement manufacturer reported an 18% year-over-year increase in standalone earnings per share (EPS) to Rs22.6 for FY25, driven by greater shipments and cost improvements. Consolidated EPS reached Rs52.5, marking a 17% year-over-year growth.

LUCK attributed the recent surge in cement dispatches in the first two months of FY26 to a favorable comparison with lower figures from the previous year. The organization believes the impact of recent floods on cement demand will be negligible.

The briefing also covered LUCK’s progress in renewable energy and resource exploration. Battery energy storage systems are being installed at LUCK’s plants to enhance the efficiency of its 160MW renewable energy capacity, with an anticipated payback period of four to five years. Mining operations through National Resources Ltd are advancing, although significant financial returns are not expected for another six to seven years.

JS Global maintains a “Hold” rating on LUCK, with a target price of Rs480 based on a sum-of-the-parts valuation. The stock’s recent price surge suggests it is currently trading near fair value.