Maple Leaf Cement Company Limited (MLCF): On an upward trajectory! A turnaround story in the making, we expect Maple Leaf Cement Factory Limited (MLCF) to significantly outperform peers as earnings traction in FY15 confluences with dissipating risks. FY15 earnings are expected to clock in at PKR3.4bn (EPS: PKR6.5), a growth of 22%YoY on the back of i) improving gross margins (GMs) as coal prices register consistent declines, ii) lower financial charges amid continued deleveraging and iii) improved operating margins as the company focuses on curtailing its transportation costs. The strong financial performance as well as continued early debt retirement should also put to rest concerns over the financial strength of the company where we expect MLCF’s Debt / Asset to stand at 31% (D/E: 60%) in FY15 from 40% (D/E: 89%) in Mar’14. With a target price of PKR50/sh, the scrip offers an upside of 79% from current levels. #BMA
Posted on: Thu, 09 Oct 2014 08:03:24 +0000
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