Pakistan’s cement companies listed on the stock exchange are now trading at some of the lowest levels in years relative to the volume of cement they produce, signaling a potential opportunity for investors.

Excluding Lucky Cement, the sector’s average valuation is significantly below historical norms. Experts estimate that if market conditions stabilize, cement stocks could rise 28%, with gains of up to 56% possible if valuations return to previous peak levels.

The slump comes amid soaring global coal and oil prices driven by ongoing US–Iran geopolitical tensions, which have pushed production costs higher across the cement industry. Despite these pressures, domestic production remains steady, and companies continue to post stable earnings.

The following chart highlights how current stock prices are far below historical averages, suggesting room for recovery once energy prices and geopolitical risks ease.

Analysts caution that while the sector appears undervalued, prolonged geopolitical uncertainty and high fuel costs could continue to pressure margins in the near term, making timing and risk management critical for investors.