⚡ Flash Summary

D.G. Khan Cement Co. Ltd. (DGKC) held a corporate briefing session for FY25. The company reported a 9% increase in net revenue, reaching PKR 71.89 billion, and a significant increase in gross margin to 25.7%. Sales utilization increased to 79%, outperforming industry trends. DGKC’s production capacity remains substantial, with a total market capitalization of approximately PKR 72.5 billion.

📌 Key Takeaways

• ✅ Net revenue increased by 9% to PKR 71.89 billion in FY25.
• 📈 Gross margin surged to 25.7% compared to 15.9% in the previous year.
• 💰 Profit Before Tax & Levy (PBT&L) significantly increased to PKR 13.00 billion, a 4.6 times increase.
• 📊 Profit/Loss After Tax (PAT) rose to PKR 8.67 billion, showing a 16 times increase.
• 💸 Earnings per Share (EPS) increased to PKR 19.80, a 16 times increase.
• 💹 Breakup Value per Share increased to PKR 216.08.
• ✨ Market Value per share increased by 83% to PKR 165.6.
• 👍 Dividend per share increased to PKR 2.
• 🏭 Capacity utilization increased to 75%.
• 🏭 Production increased to 5.057 million MT, a 16% increase.
• 🚀 Total cement sales volumes rose by 2.1% to 46.2 million tons in FY25.
• 🌏 Exports surged 30% to 9.2 million tons, offsetting weaker local demand.
• Kiln operational days rose 10% (691 to 760).
• Nishat Packaging Limited revenue rose to PKR 3.29 billion.

🎯 Investment Thesis

DGKC presents a BUY opportunity based on its strong FY25 performance. The company’s increased revenue, improved margins, and efficient operations indicate solid growth potential. Investors can expect capital appreciation as the market recognizes the company’s enhanced value. Target price: PKR 200.0 Time horizon: Medium Term