Attock Cement has posted it's half year result ended Dec 31,2010. The PAT is 235 million and EPS is 2.72 which is 62% lower than same period EPS of 7.2. The result is disappointing and company target price has now reached 72 which earlier was given around 80-90 range. Rising energy cost along with declining brand premium has caused this decline. The company is expected to perform better in 2nd half though as coal prices are now going down from it's peak of 130$/ton and given the fact the winter season is now ending further drop is possible in coal prices which will help cement manufacturues. Remember ACPL has the strongest balance sheet in cement sector i.e it has a lowest debt. Because of disappointing results share price has decreased but company is still worth investing and investors can get this share at lower prices. The expectation for FY 11 EPS is now revised, as now the company is expected to post an EPS of PKR 7 (previous expectation was PKR 13) along with dividend of PKR 5. With the current price of 65, dividend yield is 7.7% and P/E is 9.3, not that bad still.
good work
ReplyDelete