External broker reports(aggregated public sources), Topline Securities

Topline Securities

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External broker reports(aggregated public sources)

Equity Bottom-Up

<ul><li>We initiate coverage with ‘Buy’ stance on Cherat Cement Company (CHCC) with Jun-2027 Target Price (TP) of Rs412/share, offering a capital gain of 33% and dividend yield of 2% (total return 35%), suggesting an exit multiple of 7.8x based on FY28F earnings vs. historic forward PE multiples of 7x (max 13x).</li><li>We anticipate CHCC to post earnings of Rs38.9/45.6/52.6 per share in FY26E/FY27F/FY28F and dividend of Rs6.3/7.3/8.5 per share. Historically, the company has achieved 10-year revenue and profit CAGR of 19% and 21%, respectively. </li><li>CHCC's strong balance sheet underpins its capital allocation flexibility, positioning it among the least leveraged players in the cement sector, with a debt-to-assets ratio of 7% and a debt-to-equity ratio of 0.1x as of 3QFY26, thanks to high EBITDA generation.</li></ul>

We initiate coverage with ‘Buy’ stance on Cherat Cement Company (CHCC) with Jun-2027 Target Price (TP) of Rs412/share, offering a capital gain of 33% and dividend yield of 2% (total return 35%), suggesting an exit multiple of 7.8x based on FY28F earnings vs. historic forward PE multiples of 7x (max 13x).We anticipate CHCC to post earnings of Rs38.9/45.6/52.6 per share in FY26E/FY27F/FY28F and dividend of Rs6.3/7.3/8.5 per share. Historically, the company has achieved 10-year revenue and profit CAGR of 19% and 21%, respectively. CHCC's strong balance sheet underpins its capital allocation flexibility, positioning it among the least leveraged players in the cement sector, with a debt-to-assets ratio of 7% and a debt-to-equity ratio of 0.1x as of 3QFY26, thanks to high EBITDA generation.

Cherat Cement (CHCC) - Initiate With “BUY”; Healthy EBITDA, Compelling Valuation