Lahore: Maple Leaf Cement Factory Limited (MLCF) held its fiscal year 2026 analyst briefing, highlighting anticipated growth in the local cement industry and addressing challenges related to rising fuel costs. The company expects industry sales to increase by 7.5% in the upcoming fiscal year, aligning with current trends, and sees potential for additional growth through the government's housing initiative.

According to JS Global, MLCF reported an average retention price of Rs16,726 per ton in the fourth quarter of FY26, a slight decrease from the previous fiscal year's average. The company's fuel mix for FY26 included a significant portion of local Darra coal, alternative fuels, and other sources, with notable price variations. Fuel costs saw a 40% increase during the quarter, impacting cement prices, although some cost pressures remain unaddressed.

The briefing also covered transportation costs, noting a reduced cost differential between rail and road options due to higher fuel expenses. MLCF's power mix primarily relies on coal-fired power, supplemented by waste heat recovery, solar, and national grid sources. The management addressed rising grid costs, which remain below local tariffs, and discussed plans to enhance solar capacity and explore battery energy storage systems to boost energy efficiency.

In addition to its core cement operations, MLCF is advancing its NovaCare Hospitals project, with the first facility in Islamabad expected to be completed by mid-2027. The project represents a substantial investment, with ongoing discussions regarding foreign investment. The company's diversification efforts also include land acquisition in Lahore for future hospital development.

The briefing concluded with updates on a pending royalty case and the company's product performance, including the positive contribution of its newer product, "Putty." Despite current challenges, MLCF maintains a favorable market position, trading at an estimated FY27 price-to-earnings ratio of 6.1.