Attock Cement Pakistan Limited (ACPL): Lucrative outlook behind capacity augmentation; Initiate with ‘BUY’ – By AAH Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We initiate coverage on Attock Cement Pakistan Limited (ACPL) with a &lsquo;&rsquo;BUY&rsquo;&rsquo; recommendation, based on Jun&rsquo;18 price target (PT) of PKR 349.25/share, implying a potential upside of 75.7% from last day closing price of PKR 198.81/share along with dividend yield of 7.54%.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We estimate FY17 EPS to expand by 6.1% YoY to PKR 26.79. We expect earnings to grow at a back-loaded CAGR of 12.2% during FY19-21. For FY18, earnings to increase by 8.4% YoY and clocked in at PKR 29.03/share.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We expect 1.2 mtpa capacity expansion to drive cement volume from FY18 and onwa...