TABLE OF CONTENTS

S NO. TITLE PAGE

01 INTRODUCTION 02

02 FINANCIAL ANALYSIS 06

03 STOCK PERFORMANCE 07

04 FUTURE OUTLOOK 08

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 INTRODUCTION

THE GROUP

Lucky Cement Limited has been sponsored by Yunus Brothers Group (YB Group) which
is one of the largest business groups of the Country based in Karachi and has grown up
remarkably over the last 50 years. The YB Group is engaged in diversified manufacturing
activities including Textile, Spinning, Weaving, Processing, Finishing, Stitching and
Power Generation. The Group consists of a number of industrial establishments other
then Lucky Cement Limited, they include:

1. Lucky Textile Mills

2. Fazal Textile Mills Limited
3. Gadoon Textile Mills Limited
4. Lucky Energy (Private) Limited
5. Yunus Textile Mills

LUCKY CEMENT LIMITED

Lucky Cement came into existence in 1996 with a daily production capacity of 4200
Tons par day, currently is an omnipotent cement plant of Pakistan, and rated amongst the
few best Plants in Asia
Lucky Cement Limited is presently a 21,000 Tons Per Day, dry process Cement Plant,
located on main Indus Highway between D.I.Khan & Bannu in Pezu, Distt. Lakki
Marwat, NWFP.
With production facilities in Pezu (Production capacity: 13,000 Tons per day) as well as
in Karachi (Production capacity: 8000 Tons per day) it has the tendency to become the
hub of cement production in Asia.
In addition, Lucky Cement is aggressively pursuing to develop export markets for cement
to export bulk loose cement from Pakistan to the Gulf Countries, African Markets, and
Far East Region including Nepal & Sri Lanka.
It is the desire of Lucky Cement to put Pakistan on world map as a leading producer &
exporter of loose cement in international market.
Lucky cement has made an investment of over US$ 8 Million to develop the
infrastructure & logistics and is further developing a fleet of cement bulkers to carry
loose cement from its Karachi Plant to the Ports.
For loading cement form the bulkers to vessels, Lucky Cement has a dedicated system for
discharging cement directly from the bulkers to the vessels; at very fast discharge rates,
reducing the vessels idle time in turn making the shipments timely as per the customer
requirements.
Lucky Cement has also installed Jumbo Packers at its Karachi Plant to dispatch cement in
one ton packing requirement.

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All this and much more have made Lucky Cement the largest cement producer, with
major emphasis on supply of superior quality cement to its consumers.
CURRENT SCENARIO

Lucky Cement is the largest cement producing company in Pakistan with an annual
capacity of 6.5mtpa. Currently, it is the only company in Pakistan with a plant each in the
country's northern and southern regions, making it ideally located to cater to domestic as
well as Afghan and Middle Eastern export demand.
Lucky currently controls almost 90% of the exports to Middle East and 48% of the
overall Pakistan exports.

As you can see in the chart lucky cement earns a major chunk of its revenue from exports
But most of its revenue is from local sales and it is the market leader in Pakistan with
16% market share locally

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Lucky has emerged as the market leader in Pakistan last year from the number three
position previously (domestic market share rose to 16% from 8%). The timely
completion of key expansion projects enabled Lucky Cement to exploit the rapidly
growing domestic demand. When peer group companies were busy with their
expansionary work on new projects, the timely expansion has helped the company
outperform industry domestic demand growth by a wide gap.

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 FINANCIAL ANALYSIS

FINANCIAL RATIOS

(Rupees in '000)
Mar' 07 Jun' 06 Jun' 05 Jun' 04 Jun' 03
DATA

Current Assets 4,586,190 4,455,494 1,342,511 1,978,092

Cash & cash equivalents 1,124,285 2,063,755 141,429 1,000,067
Total Assets 24,628,187 23,622,777 14,806,836 7,012,324

Current Liabilities 6,098,610 4,752,035 2,142,763 930,882

Total Debt 14,471,396 15,117,522 8,814,634 2,207,621

Shareholder's Equity 2,633,750 2,633,750 2,633,750 2,450,000

Shareholder's Funds
Outstanding No. of Shares 263,375,000 263,375,000 263,375,000 245,000,000 0
Total Equity 8,151,464 7,069,633 5,133,683 4,307,096

Profit before Taxes 1,615,239 2,552,976 1,209,951 971,101

Interest Charges 524,437 82,809 21,691 10,842
Net Income 1,345,206 1,935,950 826,587 685,762
Total Income 12,142,620 7,984,529 3,980,109 2,907,807
Gross Profit 2,277,149 2,910,732 1,379,520 1,100,542

RATIOS

Current Ratio 0.752 0.938 0.627 2.125

Cash Ratio 0.184 0.434 0.066 1.074
Debt Ratio 0.588 0.640 0.595 0.315
Debt-to-Equity Ratio 1.775 2.138 1.717 0.513
Interest Coverage Ratio 3.080 30.830 55.781 89.568
Net Profit Margin 11.078 24.246 20.768 23.583
ROA 0.055 0.082 0.056 0.098
ROE 0.511 0.735 0.314 0.280
Asset Turnover 0.493 0.338 0.269 0.415
Net Income as % of Total 11.078 24.246 20.768 23.583
Income
EPS 5.108 7.351 3.138 2.799
Book Value per Share 30.950 26.842 19.492 17.580 14.78
STOCK PERFORMANCE

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Date Open High Low Close Volume
7/5/2007 137.00 137.85 134.05 134.05 6,689,500.00

7/4/2007 138.00 139.60 137.00 137.00 5,916,500.00

7/3/2007 138.50 141.20 137.40 138.00 13,584,300.00
7/2/2007 137.75 139.80 137.30 138.50 12,987,900.00
6/29/2007 136.90 139.90 135.25 137.75 23,023,700.00
6/28/2007 137.75 138.85 136.10 136.90 8,915,700.00
6/27/2007 137.10 139.40 136.85 137.75 13,390,800.00
6/26/2007 133.95 140.10 132.75 137.10 32,821,500.00
6/25/2007 133.05 137.70 131.55 133.95 28,443,400.00
6/22/2007 126.75 133.05 123.00 133.05 31,902,500.00
6/21/2007 121.00 127.05 121.00 126.75 22,056,100.00
6/20/2007 121.50 123.00 120.40 121.00 4,111,000.00
6/19/2007 123.90 124.50 121.00 121.50 4,867,000.00
6/18/2007 121.45 124.80 121.35 123.90 13,516,800.00
6/15/2007 122.55 122.90 118.50 121.45 10,621,200.00

140

135

130

125 Series1

120

115

110
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

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 Graphical Representation of closing stock price of lucky cement share (15/6 to 5/7)
2007
FUTURE OUTLOOK

The future looks bright for Lucky Cement which has shown strong financials showing
increases in all areas in 2006 from EPS to Book value and its 2007 ratios which are third
quarter calculations also look promising and its Book value in 2007 is also higher then
its previous year estimates .
Lucky Cement has also witnessed a steady increase in its stock performance after a 16
day monitoring the stock has shown a sharp increase in its price followed by a minor
decline towards the end but as the green line on the previous page indicates that the stock
price has gone as high as 141.20 which shows that the stock price can outperform this
recent slump in its price.
The company is listed on all three stock exchanges and its shares are highly priced at the
stock market. During the last 52 weeks the price of the share continued its upward trend
from Rs 55.80 per share to Rs 125.30 per share (source: Daily Business Recorder Dated
20.06.2007).
This shows that the company is on a constant rise Lucky Cement has a very strong
leadership and management. This can be seen by their recent success and how they have
managed to double their share of the local market in just a short while.
Lucky Cement also plans to increase their operations both locally (Installation of first
bulk loading facility in Pakistan, Up gradation of movable bulk handling facility to
continue and, Construction of silos at the port) and exploring new markets like India,
South Africa, Nepal etc.
Looking at all these details one can only assume that Lucky Cement is in fine Shape both
financially and Management wise and the future indeed looks very bright for Lucky
Cement.