{"id":11278,"date":"2025-08-22T10:01:01","date_gmt":"2025-08-22T05:01:01","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=11278"},"modified":"2025-08-22T10:01:01","modified_gmt":"2025-08-22T05:01:01","slug":"mughal-steels-riding-on-lower-costs-and-construction-revival","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/mughal-steels-riding-on-lower-costs-and-construction-revival\/","title":{"rendered":"MUGHAL Steels: Riding on Lower Costs and Construction Revival"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Lower raw material costs, a big win<\/h2>\n\n\n\n<p>Good news for <strong>Mughal Iron &amp; Steel (<a href=\"https:\/\/ksestocks.com\/blog\/tag\/mughal\/\" data-type=\"post_tag\" data-id=\"42\" target=\"_blank\" rel=\"noreferrer noopener\">MUGHAL<\/a>)<\/strong> Steels! The company is set to benefit from falling raw material costs. This is mainly because of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Lower duties<\/strong> on imported steel scrap<\/li>\n\n\n\n<li><strong>Stable international scrap prices<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Steel scrap is the main ingredient for making steel. With duties reduced and prices ~28% below their FY22 peak, MUGHAL\u2019s costs are falling fast.<\/p>\n\n\n\n<p>What does this mean for margins?<br> A <strong>3-4% boost in primary margins<\/strong>, rising from 27% to about 31%.<br> Simply put, the company will keep more profit from every ton of steel it sells.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The construction sector is coming back<\/h2>\n\n\n\n<p>The timing couldn\u2019t be better. Pakistan\u2019s construction sector, which is the biggest buyer of long steel, is showing signs of revival:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Interest rates have dropped from <strong>22% to 11%<\/strong><\/li>\n\n\n\n<li>Currency (USD\/PKR) has stabilized<\/li>\n\n\n\n<li>Energy costs are lower<\/li>\n\n\n\n<li>The government is backing housing and infrastructure through financing schemes and loan guarantees<\/li>\n<\/ul>\n\n\n\n<p>All of this means more demand for houses, buildings, and infrastructure. And when construction picks up, demand for steel goes up, too.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why does this matter for investors?<\/h2>\n\n\n\n<p>MUGHAL sits at the sweet spot: <strong>lower costs + higher demand<\/strong>. With cheaper raw materials and construction activity improving, the company is set to enjoy stronger margins and higher sales volumes.<\/p>\n\n\n\n<p>For long-term investors, this combination could drive steady growth in both earnings and market share.<\/p>\n\n\n\n<p><strong>Source: Arif Habib Limited<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Good news for Mughal Iron &#038; Steel (MUGHAL) Steels! The company is set to benefit from falling raw material costs. This is mainly because of:<\/p>\n","protected":false},"author":11,"featured_media":6531,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,155],"tags":[42],"class_list":["post-11278","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-fundamental-analysis","tag-mughal"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MUGHAL-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MUGHAL-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MUGHAL-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/MUGHAL-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11278","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=11278"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11278\/revisions"}],"predecessor-version":[{"id":11279,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11278\/revisions\/11279"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6531"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=11278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=11278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=11278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}