Fecto Cement Company: Unleveraged balance sheet to provide room for expansion! - By Pearl Research
<p></p><ul><li><span style="font-size:medium;">We initiate coverage on Fecto Cement Ltd. (FECTC) with June'17 DCF based
target price of PKR118/share and recommend a ‘HOLD’ call on the scrip. We
expect an EPS of PKR14.74 (Dividend yield of 5%) in FY17 depicting a decline
of 9% (YoY). Moreover, we foresee FY18 and FY19 earnings to dip further to
PKR13.80/share and PKR 13.56/share, respectively.</span></li></ul><ul><li><span style="font-size:medium;">Fecto Cement (FECTC) is part of the FECTO Group of Industries which
commenced its operations in 1952 with the trading and assembly of electrical
appliances and wires. Later on, the group diversified its operations expanding
into the industrial sectors by establishing a cement plant, sugar mills, tractor
plant, paper sack and hardboard manufacturing units. Apart from Fecto
Ce...
