in fiscal year 2017 and beyond DGKC
remained among the top of the pack during fiscal year 2017 despite a less than exciting year in terms of earnings and margins.
Given the oversold status in some cases and backed by sound fundamentals in others, our recommended plays include PPL, ICI, HUBC, LUCK, DGKC
, ENGRO, EFERT, UBL, POL, and INDU.
The plant would have a capacity of 9,000 tons per day and will considerably raise the share of DGKC
in the cement industry.
We have also revised our FY12-FY15 EPS estimates for both DGKC
and Lucky based on 1) increase in local cement prices by Rs15-20 per bag and 2) upward revision in local cement sales.
Scrip-wise top contributors were LUCK added 56 points, MCB 26 points, DGKC
25 points, BAHL 15 points and PPL added 13 points to index gain while scrip's that posted a negative contribution remained POL shed 25 points, NESTLE shed 23 points, DAWH erode 18 points, HBL 17 points and THAL took away 15 points to the index.
Tuesday, Sep 22, 2015 DGKC
- A remarkable year ends on a strong note; reiterate Buy
continued to gain support from its other income (up 17%YoY/33%QoQ) primarily driven by dividend income from its investee companies.
Our top investment ideas include LUCK DGKC
MLCF UBL HUBC ENGRO FATIMA POL PPL and NRL.
Other top investment ideas include DGKC
and LUCK in the cement sector (where the risk of price wars is overplayed we maintain) UBL ABL NBP HUBC KAPCO and NRL.
Our favorite investment ideas are PPL UBL HUBC KAPCO LUCK EFERT and DGKC
While long term demand prospects seem promising, performance of cement sector stocks in the near term continue to be dependent on the announcement of capacity expansion by DGKC
, which could bring price war concerns to the forefront once again.
The new list included ABL, ACPL, AHL, AHSL, AICL, AKBL, ANL, APL, ATRL, BAFL, BAHL, BOP, BOSI, DGKC
, Engro, EPCL, FABL, FFBL, FFC, HBL, HUBCO, ICI, JOVC, JSCL, JSIL, KAPCO, Luck, Mari, MCB, NBP, NETSOL, NIB, OGDC, PAEL, PAKRL, PKGS, POL, PPL, PRL, PSO, PTCL, Shell, SNGP, SPL and UBL.