{"id":9138,"date":"2025-05-06T10:25:45","date_gmt":"2025-05-06T05:25:45","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=9138"},"modified":"2025-05-19T13:03:40","modified_gmt":"2025-05-19T08:03:40","slug":"should-you-buy-kohc-after-its-3qfy25-results","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/should-you-buy-kohc-after-its-3qfy25-results\/","title":{"rendered":"Should You Buy KOHC After Its 3QFY25 Results?"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Key Takeaways:<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>KOHC posted 14% YoY earnings growth<\/strong> in 3QFY25, led by a strong recovery in gross margins.<\/li>\n\n\n\n<li><strong>Gross margins rose to 39.5%<\/strong> from 29.9% YoY, aided by cheaper coal and lower energy costs.<\/li>\n\n\n\n<li><strong>9MFY25 EPS grew 42% YoY to PkR47.1,<\/strong> and KOHC remains a strong contender for further upside.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Kohat Cement posts strong earnings growth in 3QFY25 on margin expansion<\/h2>\n\n\n\n<p>Kohat Cement Company Ltd. (<strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/kohc\/\" target=\"_blank\" rel=\"noopener\" title=\"KOHC\">KOHC<\/a><\/strong>) reported a robust performance in its 3QFY25 results, posting a <strong>net profit of PkR2.3bn (EPS: PkR11.9)<\/strong>\u2014a 14% year-on-year increase compared to PkR2.1bn (EPS: PkR10.5) in the same period last year. The growth was driven by a significant improvement in gross margins, offsetting a decline in revenue.<\/p>\n\n\n\n<p>Despite a <strong>4% YoY drop in revenue to PkR8.15bn<\/strong>\u2014mainly due to a 5% decline in dispatches\u2014KOHC managed to <strong>improve its gross margins to 39.5% from 29.9%<\/strong> in 3QFY24. This margin recovery was largely supported by <strong>lower coal prices, improved retention rates, and reduced electricity costs<\/strong>, as the company increased its reliance on cheaper power sources, including solar and grid power with falling tariffs.<\/p>\n\n\n\n<p>Operating expenses grew by 33% YoY to PkR227mn, while <strong>finance costs dropped significantly, down 60% YoY to PkR61mn<\/strong>, reflecting lower interest rates and reduced debt on the balance sheet. Meanwhile, other income declined 15% YoY to PkR921mn due to lower returns on investments.<\/p>\n\n\n\n<p>KOHC\u2019s effective tax rate stood at 36% for the quarter, slightly higher than the 34% recorded in the same period last year. As a result, net profit for 3QFY25 reached <strong>PkR2.34bn<\/strong>, up from PkR2.06bn a year ago.<\/p>\n\n\n\n<p>On a cumulative basis, the company delivered strong results for 9MFY25, <strong>with earnings rising 42% YoY to PkR9.2bn (EPS: PkR47.1)<\/strong> compared to PkR6.5bn (EPS: PkR33.2) in 9MFY24. The improvement came on the back of a <strong>22% decline in cost of goods sold<\/strong>, leading to a 41% surge in gross profit for the period.<\/p>\n\n\n\n<p> AKD Securities maintains a <strong>\u2018BUY\u2019 rating on KOHC<\/strong>, underpinned by the ongoing decline in coal prices, operational efficiency gains, and further integration of low-cost power solutions such as solar energy. Their <strong>target price for December 2025 is PkR537\/share<\/strong>, which offers a <strong>potential upside of 40% from current levels<\/strong>.<\/p>\n\n\n\n<p><strong>Source: AKD Securities<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kohat Cement Company Ltd. (KOHC) reported a robust performance in its 3QFY25 results, posting a net profit of PkR2.3bn (EPS: PkR11.9)\u2014a 14% year-on-year increase compared to PkR2.1bn (EPS: PkR10.5) in the same period last year. The growth was driven by a significant improvement in gross margins, offsetting a decline in revenue.<\/p>\n","protected":false},"author":9252,"featured_media":6820,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,138],"tags":[45],"class_list":["post-9138","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-financials","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\/9138","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\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=9138"}],"version-history":[{"count":0,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9138\/revisions"}],"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=9138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=9138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=9138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}