Top 5 Stocks That Could Double in the Next Year According to Analysts

Methodology

To compile our list, we took the average analyst upside estimates from leading brokerage houses of Pakistan and ranked them in ascending order of their upside potential.

5. D.G. Khan Cement Company Limited (DGKC)

Average analyst upside: 83%

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D.G. Khan Cement Company Limited stands out in Pakistan’s cement sector as a strong earnings recovery story supported by expansion, cost efficiency, and a meaningful investment portfolio. The company’s performance in the latest period shows that both operational improvements and strategic initiatives are working in its favor.

Investment case

The core investment case for DGKC is built around three pillars: improving profitability, large-scale capacity expansion, and value creation from its investment portfolio. Together, these elements position the company as more than just a traditional cement producer, but also a diversified industrial player with additional financial upside.

Financial performance (1HFY26)

In the first half of fiscal year 2026, DGKC delivered a strong financial performance. Net profit rose significantly to PKR 5.8 billion, marking a 66% year-on-year increase. This growth was supported by a 10% rise in revenue to PKR 40.6 billion, while gross margins stood at 26.9%.

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A key driver behind this earnings improvement was a sharp 71% decline in finance costs, which helped strengthen profitability even in a competitive industry environment. This cost efficiency played an important role in boosting the bottom line.

Expansion-led growth strategy

DGKC is actively investing in long-term capacity expansion. The company is setting up a new clinker production line with a capacity of 11,000 tons per day, making it one of the largest additions in the sector. The project cost is estimated at PKR 42–45 billion, financed through a 70:30 debt-to-equity structure.

This expansion is expected to significantly enhance production capability and strengthen DGKC’s position in both domestic and export markets.

Investment portfolio adds hidden value

Beyond its core cement operations, DGKC holds a substantial investment portfolio worth approximately PKR 53 billion. This includes a 9% stake in MCB Bank, along with investments in several companies within the Nishat Group ecosystem.

This portfolio provides an additional layer of value and helps diversify earnings beyond the cyclical nature of the cement industry.

Energy efficiency and cost control

DGKC has also focused heavily on energy self-sufficiency. The company operates a 60MW internal coal power plant, which covers around 60% of its total energy requirements. This internal generation capacity helps reduce reliance on external power sources and supports margin stability, especially during periods of high energy prices.

Export opportunity and outlook

On the demand side, DGKC is well positioned to benefit from rising export opportunities, particularly in African markets. With improving export retention prices and reduced competition from regional players, the company has a favorable setup to expand its international footprint.

Bottom line

DGKC’s story is a combination of earnings recovery, strategic expansion, and hidden value from its investment portfolio.

With strong profit growth, large-scale capacity additions, energy efficiency initiatives, and export potential, the company is gradually strengthening its long-term positioning in the cement sector. If execution remains consistent, DGKC has the potential to deliver sustained value creation in the coming years.

⚠️ 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 →