Karachi: D.G. Khan Cement Company Ltd (DGKC) is forecasted to benefit substantially from the ongoing monetary easing cycle, paving the way for improved financial metrics and an enhanced stock valuation by December 2025. Analysts have reiterated a 'Buy' rating for DGKC, setting a target price of Rs140 per share, signaling a potential upside of 40%.

According to a statement by JS Global, DGKC's interest coverage ratio, a critical indicator of financial health, is anticipated to improve markedly. Projections suggest a rise from 1.37x in the fiscal year 2024 to 2.28x in 2025 and further to 3.9x in 2026, positioning the company as a key player in the cement sector during the easing cycle.

The company's core business margins are also expected to see improvement. This is attributed to a gradual alignment of prices between the North and South regions, alongside a more favorable sales mix. However, the statement emphasizes that a slower than anticipated recovery in domestic demand and prices could pose a risk to this optimistic outlook.