Karachi: The profitability of Pakistan’s cement sector is projected to grow by a substantial 42% year-on-year in the fiscal year 2025, according to a recent analysis by AKD Securities Limited. This anticipated growth is attributed to improving macroeconomic conditions, higher retention prices, and a decrease in finance costs due to falling interest rates.
AKD Securities forecasts a 32% year-on-year earnings increase for the AKD Cement Universe in the fourth quarter of FY25. The increase is expected as a result of heightened retention prices, which are anticipated to significantly boost profitability across the sector.
The report underscores a positive outlook for the cement sector, emphasizing an expected rise in core profitability. Among the companies analyzed, Fauji Cement Company Limited (FCCL) and Kohat Cement Company Limited (KOHC) are highlighted as preferred picks due to their robust performance and potential for growth.
This analysis sheds light on the evolving dynamics within Pakistan’s cement industry, offering a glimpse into future financial trends influenced by macroeconomic shifts and strategic pricing adjustments.
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