{"id":10918,"date":"2025-08-19T13:40:50","date_gmt":"2025-08-19T08:40:50","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=10918"},"modified":"2025-08-19T13:40:50","modified_gmt":"2025-08-19T08:40:50","slug":"kohat-cement-company-kohc-growing-carefully-but-with-shareholders-in-mind","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/kohat-cement-company-kohc-growing-carefully-but-with-shareholders-in-mind\/","title":{"rendered":"Kohat Cement Company (KOHC): Growing Carefully, But With Shareholders in Mind"},"content":{"rendered":"\n

Kohat Cement Company (KOHC<\/a>) <\/strong>isn\u2019t rushing into rapid expansion, and that\u2019s a good thing. The company is scaling up strategically<\/em>, focusing on demand-driven growth and shareholder value.<\/p>\n\n\n\n

Let\u2019s break down how KOHC is balancing smart expansion with smart capital decisions.<\/p>\n\n\n\n

Expansion with caution<\/h2>\n\n\n\n

KOHC is already one of Pakistan\u2019s largest cement companies, ranked 7th in the country, with a production capacity of 5.2 million tons<\/strong> per year.<\/p>\n\n\n\n

Here\u2019s a quick look at their production setup:<\/p>\n\n\n\n

    \n
  • 3 grey cement lines<\/li>\n\n\n\n
  • 1 white cement line<\/li>\n<\/ul>\n\n\n\n

    Its most recent expansion was in FY20<\/strong>, when it added a 2.3 million ton grey cement line<\/strong>.<\/p>\n\n\n\n

    To boost efficiency, KOHC also completed a technical upgrade recently:<\/p>\n\n\n\n

      \n
    • The third production line (from 2005) was upgraded from 6,700 tons\/day to 7,064 tons\/day<\/strong><\/li>\n\n\n\n
    • This was done by optimizing the pyro-process, a key step in cement production<\/li>\n<\/ul>\n\n\n\n

      New plant coming in Khushab<\/h2>\n\n\n\n

      KOHC isn\u2019t stopping there. It has announced plans for a new cement plant in Khushab<\/strong>, with a capacity of 7,800 tons per day<\/strong>.<\/p>\n\n\n\n

      Infrastructure work at the site has already started.
      However, the company is being cautious; the final order for plant machinery will only be placed once market demand picks up.<\/strong><\/p>\n\n\n\n

      Estimated investment (CAPEX) for this project:<\/p>\n\n\n\n

        \n
      • PKR 35\u201340 billion<\/strong><\/li>\n\n\n\n
      • Will be funded 50% by debt and 50% by equity<\/strong><\/li>\n\n\n\n
      • That\u2019s about USD 50\u201357.5 per ton<\/strong>, in line with industry standards<\/li>\n<\/ul>\n\n\n\n

        This cautious approach ensures the company avoids unnecessary risk while staying ready to grow when the time is right.<\/p>\n\n\n\n

        Committed to shareholder value<\/h2>\n\n\n\n

        KOHC isn\u2019t just focused on expansion; it\u2019s also making deliberate moves to reward shareholders and improve stock value<\/strong>.<\/p>\n\n\n\n

        Share Buybacks<\/h3>\n\n\n\n

        KOHC has completed two major buyback programs<\/strong>:<\/p>\n\n\n\n

          \n
        1. Jan 2023:<\/strong>\n
            \n
          • Bought back 5 million shares<\/strong> at an average of PKR 173.9\/share<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n
          • Oct 2024 \u2013 Apr 2025:<\/strong>\n
              \n
            • Bought back 12 million shares<\/strong> at an average of PKR 392.4\/share<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n

              These buybacks reduce the number of shares in the market, which can boost the value of remaining shares, a positive for shareholders.<\/p>\n\n\n\n

              Stock split to increase accessibility<\/h2>\n\n\n\n

              In another major move, KOHC recently announced a 5:1 stock split<\/strong>. That means:<\/p>\n\n\n\n

                \n
              • 1 share becomes 5<\/li>\n\n\n\n
              • Total shares increase from 183.8 million to 919.3 million<\/strong><\/li>\n<\/ul>\n\n\n\n

                Why this matters:<\/p>\n\n\n\n

                  \n
                • It improves liquidity<\/strong> (easier to buy\/sell the stock)<\/li>\n\n\n\n
                • It makes the stock more affordable for small investors<\/strong><\/li>\n\n\n\n
                • It helps in better price discovery<\/strong>, especially for institutional investors<\/li>\n<\/ul>\n\n\n\n

                  Final thoughts<\/h2>\n\n\n\n

                  Kohat Cement is taking the long view:<\/p>\n\n\n\n

                    \n
                  • Expanding production capacity without rushing<\/li>\n\n\n\n
                  • Improving the efficiency of existing assets<\/li>\n\n\n\n
                  • Using real estate for new revenue (see earlier post)<\/li>\n\n\n\n
                  • Increasing investor returns through buybacks and stock splits<\/li>\n<\/ul>\n\n\n\n

                    For investors looking at steady, strategic players in the cement space, KOHC is one to watch.<\/p>\n\n\n\n

                    Source: Insight Securities<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

                    Kohat Cement Company (KOHC) isn\u2019t rushing into rapid expansion, and that\u2019s a good thing. The company is scaling up strategically, focusing on demand-driven growth and shareholder value.<\/p>\n","protected":false},"author":11,"featured_media":6820,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,155],"tags":[45],"class_list":["post-10918","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-fundamental-analysis","tag-kohc"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/KOHC-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/KOHC-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/KOHC-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/KOHC-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10918","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=10918"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10918\/revisions"}],"predecessor-version":[{"id":10919,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10918\/revisions\/10919"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6820"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=10918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=10918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=10918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}