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Bestway Cement Limited (BWCL) reported its Q1 2025-26 results, showing a mixed performance. While revenue increased slightly, gross profit declined. The company maintained its position as the largest cement producer in Pakistan. BWCL declared an interim cash dividend of 100%, reflecting confidence in its financial position. Despite industry challenges and border issues with Afghanistan impacting exports, BWCL has maintained financial and operational resilience.
Signal: HOLD ⏸️
Strength: 6/10
Sentiment: NEUTRAL
Time Horizon: MEDIUM_TERM
📌 Key Takeaways
1. Cement dispatches grew by 16.5%, slightly higher than the industry’s 16.3% increase. 📈
2. Gross turnover increased by 8% to Rs. 41.2 billion compared to Rs. 38.2 billion last year. 💰
3. Net turnover increased by 4% to Rs. 25.9 billion, driven by higher sales volumes. 📊
4. Gross profit decreased to Rs. 7.2 billion from Rs. 8.1 billion in the same quarter last year. 📉
5. Financial charges decreased to Rs. 1.4 billion from Rs. 2.5 billion due to lower interest rates. 📉
6. Profit before tax increased to Rs. 8.2 billion compared to Rs. 6.2 billion last year. 👍
7. Profit after tax increased to Rs. 5.5 billion from Rs. 4.1 billion. 🎉
8. Earnings per share (EPS) increased to Rs. 9.22 from Rs. 6.81. 🚀
9. Declared an interim cash dividend of 100%. 💸
10. Spent over Rs. 46 million on CSR initiatives. 💖
11. Domestic cement dispatches increased by 15.1% to 9.57 million tonnes. 🏘️
12. Export volumes grew by 20.9% to 2.59 million tonnes. 🚢
13. Finance cost decreased from Rs. 2,446.933 million to Rs. 1,405.085 million. 📉
14. Clinker production increased by 10.2% to 1,450,667 tonnes. 🏭
15. Cement production increased by 15.6% to 1,719,282 tonnes. 🧱
🎯 Investment Thesis
A HOLD rating is appropriate for BWCL. While the increased EPS and dividend are positive, the decline in gross profit and external risks create uncertainty. The company’s leading position in the cement industry and efforts towards green energy are encouraging, but current market conditions and financial pressures warrant caution. Further observation of operational performance and mitigation of risks is necessary before considering a BUY recommendation.
Bestway Cement Limited (BWCL) held an Extraordinary General Meeting (EGM) on October 13, 2025, where shareholders approved two special resolutions. The first resolution allows BWCL to make equity investments of up to PKR 4 billion in Bestway Automotive (Private) Limited, its wholly-owned subsidiary, by subscribing to 400,000,000 ordinary shares at Rs. 10 each. The second resolution authorizes BWCL to extend a long-term loan of up to PKR 6 billion to Bestway Automotive for a period of up to five years to finance investments in the automobile sector. The loan will be repaid in four semi-annual installments, and the mark-up will be based on 3-Month KIBOR plus 50 bps, with an enhanced rate of KIBOR plus 75 bps upon default.
Signal: HOLD ⏸️
Strength: 5/10
Sentiment: NEUTRAL
Time Horizon: MEDIUM_TERM
📌 Key Takeaways
✅ BWCL to invest up to PKR 4 billion in Bestway Automotive via equity subscription.
💰 Equity investment involves subscribing to 400,000,000 ordinary shares at Rs. 10 each.
⏳ Resolution for equity investment is valid for 5 years.
🏦 BWCL to extend a long-term loan of up to PKR 6 billion to Bestway Automotive.
📅 Loan tenure is up to 5 years from the first disbursement date.
🚗 Loan intended for investments in the automobile sector.
🗓️ Principal loan amount to be repaid in four equal semi-annual installments.
📅 Installments due at the expiry of 42, 48, 54, and 60 months, respectively.
💸 Mark-up payable annually on June 30th until full repayment.
🏦 Mark-up based on 3-Month KIBOR plus 50 bps, refreshed quarterly.
⚠️ Enhanced mark-up of KIBOR plus 75 bps applies upon default.
🏢 Bestway Automotive is a wholly-owned subsidiary of BWCL.
🤝 Managing Director and Company Secretary authorized to execute the resolutions.
📜 Resolutions passed under Section 199 of the Companies Act, 2017.
🎯 Investment Thesis
HOLD. The announcement reflects a strategic diversification by BWCL into the automotive sector through its subsidiary. While the investment has the potential for long-term growth, the lack of specific financial projections and the inherent risks associated with the automotive industry warrant a cautious approach. Additional information on the expected performance and synergies from Bestway Automotive is needed to justify a BUY rating. A price target cannot be accurately determined without more detailed financial forecasts. Investment horizon is medium term, contingent on Bestway Automotive’s performance.
Bestway Cement Limited announced its financial results for the quarter ended September 30, 2025. The company declared an interim cash dividend of Rs. 10 per share, representing a 100% payout. Profit for the period increased to Rs. 5,495.79 million, compared to Rs. 4,060.648 million in the same period last year. Earnings per share (EPS) also increased, reaching Rs. 9.22 compared to Rs. 6.81.
Signal: BUY 📈
Strength: 8/10
Sentiment: POSITIVE
Time Horizon: MEDIUM_TERM
📌 Key Takeaways
💰 Interim cash dividend declared: Rs. 10 per share (100%).
📅 Quarter end date: September 30, 2025.
📈 Profit for the period: Increased to Rs. 5,495.79 million.
💪 Profit last year: Rs. 4,060.648 million.
💸 Earnings per share (EPS): Increased to Rs. 9.22.
📉 EPS last year: Rs. 6.81.
🗓️ Share transfer books closing: October 27, 2025 to October 29, 2025.
✅ Interim Statement of Financial Position available.
✅ Condensed Interim Statement of Profit or Loss (Un-audited) available.
✅ Condensed Interim Statement of Cash Flows (Un-audited) available.
🏢 Company: Bestway Cement Limited.
🤝 Board meeting: Held on Wednesday, October 15, 2025.
📍 Meeting location: Islamabad.
✔️ Net turnover: 25,885.667 million Rupees (‘000).
✔️ Gross turnover: 41,223.567 million Rupees (‘000).
🎯 Investment Thesis
BUY. Bestway Cement’s strong financial performance, highlighted by increased profits and EPS, combined with a 100% cash dividend, signals strong management and financial health. Price target of 150 Rupees, a 15% upside from current levels over the next 12 months.
Bestway Cement Limited (BWCL) will hold a Board of Directors meeting on October 15, 2025, to consider the Quarterly Accounts for the period ending September 30, 2025. A closed period has been declared from October 8, 2025, to October 15, 2025, during which directors, the CEO, and executives are prohibited from dealing in the company’s shares. This announcement ensures compliance with the Pakistan Stock Exchange regulations regarding insider trading. The market will be keen to see the quarterly results and commentary from the board.
Signal: HOLD ⏸️
Strength: 5/10
Sentiment: NEUTRAL
Time Horizon: MEDIUM_TERM
📌 Key Takeaways
📅 Board meeting scheduled for October 15, 2025, in Islamabad.
📊 Quarterly accounts for the period ending September 30, 2025, will be reviewed.
🔒 Closed period declared from October 8 to October 15, 2025.
🚫 Directors, CEO, and executives are restricted from trading shares during the closed period.
📜 Compliance with clause 5.6.4 of the Exchange regulations is ensured.
🇵🇰 Announcement made to the Pakistan Stock Exchange.
🏢 Hassan Niazi, Company Secretary, issued the notice.
cement sector performance for Q3 2025
Regulatory compliance adhered to
No specific financial forecasts given.
🎯 Investment Thesis
Given the limited information in this announcement (simply a board meeting notice and closed period declaration), a HOLD recommendation is appropriate. Investors should await the release of the quarterly accounts before making any investment decisions. A price target and time horizon cannot be reasonably established based on this document alone.
What this means: 🏢 Meeting News: Company board is meeting to make important decisions. Stock price may move after the meeting based on what they decide.
🏢 Company & Announcement
SymbolBWCL
CompanyBestway Cement Limited
DateSep 22, 2025
Time8:25 AM
Announcement Title:
DECISION OF EMERGENT BOARD MEETING
🧠 Investment Thesis
Bestway Cement’s move into the automobile sector is a diversification strategy. While it presents potential growth opportunities, it also introduces new risks. Investors should await further details on the subsidiary’s strategy and monitor its performance before making any investment decisions.
📋 Key Highlights
Bestway Cement will incorporate a wholly-owned subsidiary for investments in the automobile sector in Pakistan.
The company plans to invest up to PKR 4 billion in equity in the subsidiary.
A shareholder loan of up to PKR 6 billion will be extended to the new subsidiary.
This investment is subject to shareholder approval as per Section 199 of the Companies Act, 2017.
⚠️ Risk Assessment
Shareholder approval is needed for the investment to proceed.
The success of the automobile sector investment is uncertain and subject to market risks.
The investment may divert resources from Bestway Cement’s core cement business.
{
"sentiment": "NEUTRAL",
"signal": "HOLD",
"strength": 5,
"brief_summary": "Bestway Cement is creating a new subsidiary to invest in the automobile sector. They plan to invest up to PKR 4 billion in equity and provide a shareholder loan of up to PKR 6 billion. This move requires shareholder approval.",
"key_points": [
"Bestway Cement will incorporate a wholly-owned subsidiary for investments in the automobile sector in Pakistan.",
"The company plans to invest up to PKR 4 billion in equity in the subsidiary.",
"A shareholder loan of up to PKR 6 billion will be extended to the new subsidiary.",
"This investment is subject to shareholder approval as per Section 199 of the Companies Act, 2017."
],
"financial_impact": "MEDIUM",
"price_target": "No immediate price target can be determined based solely on this announcement. Monitor the performance of the new subsidiary and overall market conditions.",
"risk_factors": [
"Shareholder approval is needed for the investment to proceed.",
"The success of the automobile sector investment is uncertain and subject to market risks.",
"The investment may divert resources from Bestway Cement's core cement business."
],
"investment_thesis": "Bestway Cement's move into the automobile sector is a diversification strategy. While it presents potential growth opportunities, it also introduces new risks. Investors should await further details on the subsidiary's strategy and monitor its performance before making any investment decisions.",
"simple_note": "\ud83c\udfe2 Meeting News: Company board is meeting to make important decisions. Stock price may move after the meeting based on what they decide."
}
Disclaimer: This analysis is AI-generated and for informational purposes only. It is not financial advice. Please conduct your own research before making any investment decisions.
