Client Name

Jubilee Life Insurance Company Limited

Faculty Advisor

Dr. Raja Shahzad Shaikh

SBS Thought Leadership Areas

Investment Decision Making

SBS Thought Leadership Area Justification

This ELP project aligns with the “Investment Decision Making” leadership area by supporting real-world investment analysis for the investment department of Jubilee Life Insurance. We developed a DCF valuation model for Cherat Cement to estimate its intrinsic value and assess its investment attractiveness. The analysis indicated a 77% upside potential relative to the market price, providing data-driven insights to support informed investment decisions.

Aligned SDGs

GOAL 9: Industry, Innovation and Infrastructure

Aligned SDGs Justification

ELP aligns with SDG 8: Decent work  & Economic Environment as Cherat contributes to the economy by paying taxes and generating job opportunities.

SDG 9: Industry, Innovation, & Infrastructure also aligns with the project as Cherat is heavily investing in infrastructure to improve its current facility and in innovation in an attempt to reduce it production cost.

SDG 7: Affordable and Clean Energy is also a SDG that aligns with the project  as cherat is investing in solar energy and already has a 45 MW renewable energy portfolio to reduce its dependence on energy from fossil fuels.

NDA

No

Abstract

This Experiential Learning Project is a detailed financial modelling of Cherat Cement Company Limited (PSX: CHCC) followed by cement industry analysis, done on behalf of the Investment Department of Jubilee Life Insurance Company Limited. The study covers a comprehensive study of Pakistan’s cement industry structure and the demand supply position, competitive position, pricing trends, macro-economic sensitivities of the cement industry, and a detailed fundamental analysis of the historical financial performance of Cherat Cement for FY 2016 to 2025.

A forward-looking financial model was developed, and projection was carried out for the income statement, balance sheet and cashflow statements of Cherat Cement for FY2026 to FY2030. The model's assumptions are based on historical industry & company provided dispatches data, coal price forecasts, PKR/USD exchange rate projections and macroeconomic indicators such as inflation and GDP growth. Valuation was performed based on Discounted Cash Flow (DCF) technique of analysis and relative valuation based on the forward P/E multiples of peers. Sensitivity and risk analyses were performed to assess the sensitivity of the projected profitability and intrinsic value to the key variables.

The results have shown that the company, which posted record profitability of PKR 8.68 billion in FY2025, is set to further improve its earnings profile as its finance cost has been declining, utilization has been improving and it has a renewable energy portfolio that structurally lowers the cost of fuel and power, which is the primary cost driver of a cement company. The company's green field land reserve at D.I. Khan and brown field expansion optionality also adds to its long-term investment attractiveness. Subsequently, based on our analyses, we have a favorable stance on the company, based on risk – reward outlook on the scrip.

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

Download

Share

COinS