Karachi, Maple Leaf Cement Factory Limited (MLCF), in a recent corporate briefing, has announced its diversification into the healthcare sector. This move comes as a complement to its core cement operations, including expansion and cost initiatives.

According to JS Research, MLCF plans to invest around Rs30 billion in building a hospital, with a Debt: Equity ratio of 50:50. MLCF will contribute Rs10 billion of the Rs15 billion project equity, securing approximately a 67% controlling interest. On the cement front, MLCF management remains optimistic about its market share, thanks to its recent brownfield expansion that increased its total capacity to around 7.9 million tons. The company has consistently reported stable gross-level performance, which is expected to continue. The management cited an improved fuel and electricity mix, including an increased use of local coal, biomass, and husk, as key factors supporting margins. JS Research maintains an Overweight stance on MLCF, with a target price of Rs48, indicating potential growth from current levels.