$CHCC Cherat Cement Company Ltd. (CHCC): 1QFY26 Result Review – By AKD Research
$CHCC
Cherat Cement Company Limited
Rs. 309.98
-0.86%
- Revenue inclined by 6%YoY to PkR10.3bn, where 19%YoY increase in volumes during the quarter outweigh the impact of 14%YoY decline in retention prices.
- Gross margins declined to 36.3% from 40.0% in SPLY, driven by increase in royal ty rates in KPK region. Notably, royalty rates in KPK region increased to PkR350/ ton compared to PkR250/ton during SPLY.
- We maintain a ‘Buy’ stance on CHCC with a Jun’26 DCF target price of PkR605.6/ sh. Our liking for the scrip is driven by; i) company’s strong deleveraging, bring ing its D/E to just 0.14x, ii) robust margins, supported by increased reliance on local coal (~60%) and expansion in solar capacity to 23MW, and iii) lower royalty rates in the region.