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.

The Canadian Securities Institute


CSI is part of Moody's Analytics Learning Solutions, which offers educational programs and credentials throughout the world.

Email Newsletter

Subscribe to receive inspiration, news, and ideas in your inbox.

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