A review of listed cement companies in Pakistan

The total market capitalisation of the top 15 cement companies in Pakistan stood at US$2.738bn as of 28 March 2022. They represent a market share of 97.4 per cent in the total sales of cement in the country. A Topline Research report estimated that Pakistan listed cement companies’ EV/t (replacement cost) is hovering at around US$43/t. Amongst major players, Kohat Cement (KOHC) is trading at an attractive EV/t of US$28/t. Similarly, Fauji Cement (FCCL) is trading at an EV/t of US$31/t. Small players, including DCL, THCCL and FECTC, also trade at low EV/t of US$15-19 owing to company-specific issues.

Among them, Lucky Cement Ltd, with a market share of 17.5 per cent on 31 June 2021, has a market capitalisation of US$1096m. It recorded an average growth of 20 per cent in sales during FY17-21 (five years) and 23 per cent in the last 10 years. Its profit surged 12 per cent in the previous five years of FY17-21. 

Bestway Cement Ltd has a market capitalisation of US$459m and saw a four per cent growth in sales during FY17-21 and 13 per cent in the last 10 years. Its earnings saw a drop of one per cent in the previous five years. It has a market share of 15.2 per cent.

Maple Leaf Cement Factory Ltd, which has a market capitalisation of US$212m, has posted a growth of nine per cent in sales during FY17-21 and 11 per cent in the last 10 years. Its earnings show a five per cent decline over the previous five years. It has a market share of 8.8 per cent.

Kohat Cement Co Ltd has a market capitalisation of US$183m and has recorded a growth of 11 per cent in sales during FY17-21 and 15 per cent in the last 10 years. It has a market share of 6.6 per cent. Its earnings saw a decline of five per cent during the previous five years.

DG Khan Cement Co Ltd has a market capitalisation of US$169m and has recorded a nine per cent increase in sales during FY17-21 and nine per cent in the last 10 years. Its average profit fell by 16 per cent in the previous five years. It has a market share of 12.8 per cent.

Cherat Cement Co Ltd has a market capitalisation of US$147m and has posted a 29 per cent expansion in sales during FY17-21 and 20 per cent in the last 10 years. Its average profit was up by 18 per cent during last five years. It has a market share of 6.9 per cent.

Fauji Cement Co Ltd has a market capitalisation of US$135m and saw four per cent growth  in sales during FY17-21 and 18 per cent in the last 10 years. Its average profit decreased by eight per cent during previous five years. It has a market share of 6.1 per cent.

Pioneer Cement Ltd has a market capitalisation of US$94m and has recorded a growth of 18 per cent in sales during FY17-21 and 15 per cent in the last 10 years. Its average profit declined five per cent over the previous five years. It has a market share of 5.9 per cent.

Attock Cement Pakistan Ltd has a market capitalisation of US$94m and posted an increase of nine per cent in sales during FY17-21 and 10 per cent in the last 10 years. Its average profit fell by 17 per cent during the previous five years. It has a market share of 5.9 per cent.

Gharibwal Cement Ltd has a market capitalisation of US $59m and saw a three per cent expansion in sales during FY17-21 and 14 per cent in the last 10 years. Its average profit declined by 10 per cent over the previous five years. It has a market share of 3.1 per cent.

Power Cement Ltd has a market capitalisation of US$36m and has recorded a growth of 28 per cent in sales during FY17-21 and 20 per cent in the last 10 years. Its average profit declined by six per cent over the previous five years. It has a market share of 4.2 per cent.

Flying Cement Co Ltd has a market capitalisation of US$21m and reported a five per cent advance in sales during FY17-21 and 16 per cent in the last 10 years. Its average profit stood flat during the previous five years. It has a market share of 0.7 per cent.

Dewan Cement Ltd has a market capitalisation of US$17m and has posted -13 per cent in sales during  FY 17-21 and two per cent in the last 10 years. Its average profit tumbled by 185 per cent over the previous five years. It has a market share of 1.6 per cent. 

Thatta Cement Co Ltd has a market capitalisation of US$10m and saw no growth in sales during FY17-21 and four per cent in the last 10 years. It has a market share of 0.7 per cent. 

Fecto Cement Ltd has a market capitalisation of US$6m and experienced no growth in sales during FY17-21 but reported four per cent growth in the last 10 years. It has a market share of 1.3 per cent.