LUCK - Our top pick from the sector, (AKD Daily, Mar 22, 2023)
LUCK - Our top pick from the sector
- Lucky cement commissioned its Pezu capacity expansion of 3.15mn tons per annum in late Dec’22, with a total cement capacity of 15.3mn TPA, holding its mark as the largest cement producer of Pakistan.
- LUCK uses 80%/20% of afghan/local coal in their north plant. Moreover, company is committed to further add 10-20% of alternative fuel to the fuel mix of its South plant. Company presently has 32% of WHR and Solar in their power mix.
- Company is the least leveraged cement player in our universe with D/E of 0.17 and D/A of 0.11 on an unconsolidated basis, compared to avg. D/E: 0.61 and D/A: 0.30 of AKD universe (Ex LUCK).
- Lucky cement has a well diversified portfolio outside of its core operations, in power, autos, and chemicals. Moreover, the cement business is also hedged with operations in Iraq and DR Congo as well.
- We have a “Buy” rating on the stock, with Dec’23 TP of PkR602/sh, offering a potential upside of 46% from the stock’s last close.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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