Fauji Cement Co. Ltd: Exchange loss on the cards Event· - TopicsExpress



          

Fauji Cement Co. Ltd: Exchange loss on the cards Event· Post IMF deal, PKR has depreciated 6% in the span of 13 weeks posing pressure on companies having dollar denominated loans. We believe FCCL, having foreign debt component of US$58.5mn as of June 2013, is likely to post exchange losses to the tune of PKR389mn in 1QFY14. Despite this, we believe management initiatives on WHRP for cost reduction and strong pricing discipline will likely to keep margins afloat. We revised upwards our target price by 9% to PKR16.1/sh and lifted the FY15-17E estimates by 4-6% due to impact of WHRP. We upgrade our stance to Outperform on FCCL.
Posted on: Fri, 27 Sep 2013 06:36:46 +0000

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