The ball is really in the court for steel and cement manufacturers lately who hope to benefit from the rising demand in construction, automotive, and electronic sectors and have already started witnessing it if the outgoing year is any indication. International Steel Limited (PSX: ISL) closed off the fiscal year with a 65 percent boost in revenues and nearly not the same increase in cost of goods that helped bump up the margins from 14 percent to 18 percent in FY17.

Even though the stock hit its lower lock after the result announcement, possibly due to a sequential fall in sales for Q4, over the past year the market has been responding really well. The scrip has shot up; nearly quadrupling in the past year from a price of Rs36 to Rs130.77 hitting Rs165 in February and May.

The anti-dumping duties levied on Chinese imports have proved to favour domestic flat steelmakers who were being hurt by cheaper imports. This has boosted sales for much of the sector manufacturing flat steel products.

With the rising steel per capita consumption (37.5kg)—that remains significantly below the global average of 224kg—the sector is expected to grow by 10 percent by some estimates.

This has propelled the major players to expand production capacities. ISL with its current capacity of 500,000 tons, currently operating at maximum utilization, is expected to double this in a few years.

Despite a higher effective tax for FY17, the company recorded a 158 percent growth in its bottom-line which is pretty phenomenal even though the pre-tax level profit growth was much higher.

The company sealed it with a final cash dividend of 10 percent in addition to the 25 percent interim already paid. The company is on a strong footing with demand dynamics as they stand and a curb on imports which could shield it from the volatility of international steel prices too.