Karachi: Lucky Cement Ltd, a prominent player in the cement industry, reported a significant growth in its earnings for the first half of the fiscal year 2026, underscored by its ongoing cost optimization initiatives. The company announced a standalone earnings per share (EPS) of Rs15.86, marking a 68% year-on-year increase. On a consolidated basis, earnings rose by 13% to Rs30.45 per share.
According to JS Global, the company's management revealed during a corporate briefing that the implementation of UC 3.0 technology at its Karachi plant has been a key factor in its improved financial performance. This technology, installed at a cost of Rs3-3.5 billion, is expected to enhance cost efficiency by reducing coal consumption per ton of clinker produced. It also enables the use of cheaper, high-sulphur coal, with an anticipated payback period of 5 to 7 years. Plans are underway to extend this technology to the plant's remaining production lines.
The company maintains a positive outlook on its stock, with a buy recommendation and a December 2026 target price of Rs570, suggesting a 20% upside from current levels. Furthermore, the stock is trading at an appealing price-to-earnings (P/E) multiple of 6.7x based on projected consolidated earnings for the fiscal year 2027.
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