AKD Securities Limited – LUCK: 3QFY15 Result Review

Karachi, April 23, 2015 (PPI-OT): Lucky Cement Limited (LUCK) has announced its 3QFY15 results where the company posted net earnings of PkR3.7bn (EPS: PKR11.45) against NPAT of PkR3.0bn (EPS: PkR9.35) in 3QFY14, registering an increase of 22.4%YoY. Subsequently, 9MFY15 bottom-line clocked in at PkR9.3bn (EPS: PkR28.77) vs. PkR8.2bn (EPS: PkR25.31) in 9MFY14, up by 14%YoY.

Key result highlights included: (1) revenue decline of 1%YoY to PkR11.7bn on account of lower dispatches, 2) gross margin clocking in at 46.0%, up by 240bps due to restricted COGS, and (3) effective tax rate settled at 14.2% vs. 22.7% in 3QFY15.

We continue to prefer LUCK based on favourable cement dynamics, highest cost efficiency and presence in markets like Iraq and DR Congo. At AKD Securities Limited’s Jun’15 TP of PkR583.3/sh, LUCK trades at a FY15F P/E of 13.9x.

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