<p></p><ul><li><span style="font-size:medium;">In a recent notice to Pakistan Stock Exchange (PSX), Maple Leaf Cement Factory (MLCF) notified of
placement of order for 7300tpd capacity clinker line to FL Smidth at a cost of ~EUR75mn. The 2.3mn ton
brown-field expansion is estimated to have a total cost of Rs22bn (including cost of other auxiliaries) to be
financed by 40/60 Debt/equity ratio, where the financial close has already been achieved in Dec-16.</span></li></ul><ul><li><span style="font-size:medium;">The
US$91/ton expansion is expected to be operational by Feb-19 and adds ~Rs25/sh to our valuation.
Trading at a FY17E P/E of 12.2x, we reiterate our BUY call on MLCF with a Target Price of Rs155/sh
(including expansion).</span></li></ul>
