Morning Shout released by KASB Securities Limited and Economics Research
Karachi, March 05, 2013 (PPI-OT): Cement: Strong demand period ahead; Buy Lucky and DGKC – Pak Cement sales jumped 4.4% in Feb-13, depicting a 1.2% growth in domestic sales and 15.4% growth in exports. -
According to KASB Securities Limited looking ahead, KASB Securities Limited expect s increased pre-election public sector spending and boost in construction activity post wheat crop harvest to keep domestic demand strong in the residual months of FY13. -
KASB Securities Limited are raising KASB Securities Limited FY13E domestic demand growth forecast to 8% while revising exports forecast down to -6% YoY, keeping total sales growth unchanged at 4%. -
KASB Securities Limited reiterates Buy rating for Lucky Cement (efficient cement player + growth from investments) and DGKC (under-valued + strong growth in core business). Lucky is currently trading at 21% discount to Pak Cluster 2013E P/E while DGKC is trading at 35% discount, which is unjustified in KASB Securities Limited views.