Inside Financial Markets

Maple Leaf Cement (MLCF) ~ Lowering Finance Cost

Standard Capital Securities (Pvt) Ltd.

Maple Leaf Cement (MLCF) is a key player in the northern zone, operating with the production capacity of 3.37mn tons/annum. MLCF will announce 1QFY16 result on October 19, 2015 wherein, as per our estimations, company may post an EPS of Rs1.75/sh as against Rs 1.03/sh reported in the same period last year.

  • The thrust of increase in revenue is due to the increase in the local dispatches. The upward movement of the demand results in an increase in revenue by 10% which in result will help in posting the total sales revenue of Rs. 4,898mn against Rs 4,453mn in the same period last year;
  • Lower coal and oil prices helped in controlling costs and thus reducing the cost of sales by4% YoY;
  • With higher sales and lowering costs, we expect gross margin to increase by 21% YoY;
Continuous re-payments of long-term debts…..real commendable
  • Given increased sales, MLCF started wiping out debts, which the company is doing since two years.
  • The covenant of non payment of dividend removed with a robust display of accelerated payments of long term debt.
  • This indeed is a good omen for general &Shariah compliant investors.

Valuations: low PE

MLCF deciphers FY16 PE of 7.8x8.2x.

Baqar Hussain

A Wannabe CFO, just had stepped in the corporate sector, willing to explore every aspect here and learn as mush as i can, awareness for those who dont, get the info where ever possible and stay up to date always.

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Inside Financial Markets was a joint publication of Pakistan Stock Exchange (PSX)and Society of Technical Analysts Pakistan (STAP)