Kohat Cement Company (KOHC): A Glimpse Into the Future Through Its Financials

Kohat Cement Company (KOHC) has been in the spotlight lately, and for good reason. The numbers show a company that’s not only stable today but also gearing up for strong growth in the years ahead.

Let’s break down the key highlights from their financial projections in plain and simple terms.

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Revenues are holding steady

Over the last few years, KOHC’s sales have remained solid:

• In FY23: PKR 38.9 billion
• In FY24: PKR 38.6 billion
• And they’re expected to grow steadily to PKR 51.8 billion by FY28

This signals a gradual but healthy growth path for the business.

Profits are getting a big boost

The real story is in the profit margins:

• Gross profit margins are expected to rise from 27% in FY23 to 42%+ by FY27-FY28
• Net profit will grow from PKR 5.8 billion in FY23 to over PKR 15 billion by FY28
• That’s almost a 3x increase in profits over five years!

Higher profits mean KOHC is managing its costs well and earning more from each bag of cement sold.

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Earnings Per Share (EPS) rising fast

Earnings per share (EPS) tells us how much profit each share of the company makes:

• In FY23, EPS was PKR 31.7
• It’s projected to more than double to PKR 82.8 by FY28

This is good news for investors, as it shows strong returns for shareholders.

KOHC is conservative with dividends, but that’s changing

Until now, KOHC hasn’t paid any dividends (DPS = 0). But that’s about to change:

• Starting FY27, they plan to pay PKR 7 per share
• By FY28, that goes up to PKR 11 per share

This reflects the company’s confidence in its cash flow and long-term profitability.

Valuation: still a bargain?

Even with strong profits, KOHC’s Price-to-Earnings (P/E) ratio stays low:

• FY24 P/E: 5.5x
• FY28 P/E: 5.4x

A lower P/E means the stock is undervalued; investors are paying less for every rupee of profit.

In comparison, similar companies usually trade at higher P/E multiples. For smart investors, this could be a great entry point.

Returns & financial strength

KOHC’s Return on Equity (ROE), a measure of how efficiently it uses investor money, stays strong:

• Between 17–22% over FY23–FY28
• That’s well above average and shows consistent performance

And with minimal debt and strong cash flow, the company remains financially secure.

In summary

KOHC’s financial story is one of smart management, growing profits, and disciplined spending. Here’s what stands out:

– Sales are rising steadily
– Profits are growing sharply
– Margins are improving
– The company is starting dividends
– Valuation still looks cheap
– Returns remain strong and consistent

Source: Insight Securities

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →