Lucky Cement’s share price seen rising to Rs602

October 17, 2025 (MLN): Lucky Cement Limited (PSX: LUCK) is projected to reach a target price of Rs602 per share by June 2026, an upside potential of 24% from its current market level of Rs486, according to a report by ABA Ali Habib Securities.

The brokerage has assigned a ‘Buy’ rating to the stock along with a 1% dividend yield.

The report highlights Lucky Cement’s strong earnings potential through diversification, supported by its presence in multiple sectors including cement, power, automobiles, and chemicals. The company is expected to post consolidated earnings per share (EPS) of Rs64 and dividends per share (DPS) of Rs6 in FY26, representing a 22% growth compared to FY25 EPS of Rs52.5.

“We have incorporated the latest financial results in our model, coupled with changing company dynamics such as increased utilization and improved cost efficiencies,” the report noted.

The outlook is underpinned by the revival of the construction sector, strong contribution from Lucky Electric Power Company (LEPCL), and recovery in the auto and soda ash segments. Furthermore, the firm’s international operations and portfolio diversification are expected to enhance earnings stability in the medium term.

Cement Sector Outlook

The brokerage observed that Pakistan’s cement sector experienced a slowdown in FY25, with total cement dispatches declining 4% YoY to 36.4 million tons due to high interest rates and inflation. However, economic stability, easing inflation, and government spending under the Rs4 trillion PSDP for FY26 are expected to fuel a rebound in construction activity.

The report cautioned that the key risks to Lucky Cement’s valuation include:

• Demand trailing behind projections
• A sudden increase in international commodity prices
• Lower income or sales from Lucky Motor Company (LMC).

Despite these risks, the brokerage believes Lucky Cement remains well-positioned to deliver robust earnings growth, backed by its diversified portfolio and strong operational base.

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