Are LCI’s Pharma Led Growth Enough To Offset Chemical Headwinds?

Ticker: Lucky Core Industries Limited LCI
Analyst Briefing Date: February 13, 2025

This article summarizes Lucky Core Industries Limited’s corporate briefing, focusing on FY24 and early FY25 performance, segment-wise dynamics, pharmaceutical acquisition impact, and forward outlook on revenue contribution, pricing pressures, and diversification strategy. It highlights a mixed performance across industrial segments with pharma emerging as a key growth driver.

📢 Announcement: You can now access our services and similar analyses by opening an account with us via JS Global

Don't miss:

• Top 5 Analyst Questions From Lucky Core Industries (LCI) Corporate Briefing
• 5 Reasons Why MEBL Could Continue Rising Despite a Growth Slowdown
• AKD Predicts PSO Could Double From Here

What did the management say?

Management stated that the acquisition of Pfizer’s portfolio has become a significant contributor to the pharmaceutical segment, strengthening revenue visibility and supporting diversification. The integration is expected to further enhance earnings contribution in the coming period, with projected revenue of PKR 8–9 billion from the acquired portfolio in the next fiscal year. They also highlighted that the company continues to rely on its diversified industrial base to manage cyclical volatility across segments. While pharmaceuticals and polyester remain key focus areas, management noted ongoing efforts to navigate competitive pressures in the soda ash market, particularly due to Chinese exports impacting pricing dynamics.

What did the numbers say?

LCI reported EPS of PKR 120.62 in FY24, down from PKR 149.12 in FY23, reflecting a decline in annual profitability. In 1QFY25, EPS stood at PKR 28.10 compared to PKR 27.21 in the same period last year, indicating relatively stable short-term performance. Segment-wise, pharmaceuticals contributed meaningfully with PKR 3.2 billion in acquisition-related revenue by FY24 end. Polyester performance remained supported by higher international freight costs, which helped pricing. However, soda ash volumes remained subdued due to weaker export demand and pricing pressure from Chinese supply.

What should investors expect going forward?

Investors should expect stronger revenue contribution from the pharmaceutical segment as the acquired portfolio scales to its projected PKR 8–9 billion annual revenue. This will likely remain a key driver of diversification and earnings stability. Polyester may continue to benefit from global logistics-linked pricing dynamics. However, soda ash is expected to remain under pressure due to competitive global pricing, particularly from China. Future performance will depend on how effectively the company balances growth in life sciences with cyclicality in industrial chemicals, while maintaining segment-level profitability across its diversified portfolio.

What are analysts saying about LCI stock?

📢 Announcement: We're on WhatsApp – Join Us There! 

According to the KSEStocks Database, LCI is covered by 2 analysts in Pakistan and they have an average price rating of PKR 378. This average price target suggests an upside of 51.2% from the last close of PKR 249.59. According to EPS estimates from 4 different brokers, LCI has an average 2026 EPS expectation of 25.9. This suggests the stock is now trading at a forward PE of 9.9.

Why do we compile research firms’ forecasts? Broker research is fragmented across different houses. Compiling it in one place helps investors see consensus, identify divergence, and think independently rather than relying on a single view.

⚠️ 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 →