Karachi: FCCL has reiterated its favorable outlook with a recommendation to buy, driven by expectations of expanding scale and maintaining margins, anticipating a substantial 34% upside from current levels. The company is also predicting a 3.4% dividend yield for the fiscal year 2027, supported by efficient cost management, growth in dispatch volumes surpassing industry averages, and the strategic acquisition of ACPL, which is projected to contribute Rs0.62 per share in FY27. FCCL's stock is currently valued at a forward price-to-earnings ratio of 6.8 times.

According to JS Global, FCCL has announced plans to enhance its renewable energy capabilities by adding an additional 10MW of solar power and a 50MW battery energy storage system (BESS) at its Nizampur and Jhang Bahtar plants. This expansion will bring the company's total solar capacity to 84.3MW, with 4MW already operational as of FY27. The initiative is expected to generate cost savings of Rs4-5 per cement bag, translating to approximately Rs0.15 per share. In FY26, renewable energy constituted 51% of FCCL's power mix.

The company's management is projecting an 8-10% growth in dispatch volumes for FY27. However, they caution that geopolitical factors could potentially impact these projections.