Cementos Pacasmayo S.A.A. American Depositary Shares (Each representing five Common Shares) (CPAC) fair value

ACCE thesis

Cementos Pacasmayo is a Peruvian producer of cement, ready-mix concrete, lime and precast products, selling mainly under the Portland and Cemento Sol brands into the Peruvian construction market. Its main structural edge is a vertically integrated cost base: it runs its own limestone quarries, clinker kilns and distribution, which helps explain a 40.0% gross margin and a 24.4% operating margin in an industry where pricing is largely commodity-driven. Revenue growth of 15.4% gives the stock a near-term driver, with the company's exposure to Peruvian infrastructure and private construction spend the main variable to watch. At 14.2 times forward earnings against a trailing 17.8 times, the multiple implies the market expects earnings to rise, and a 16.0% return on equity indicates that growth is being earned rather than bought. The stock is a small-cap with an emerging-market domicile and no index membership, so liquidity, currency and Peruvian political risk need the closest scrutiny before any position is considered.