Cairo – Mubasher: Beltone financials’ Research Department raised the fair value of Edita Food Industries from EGP 13.14 per share to EGP 19.31 per share, while assigned it a hold recommendation.
Beltone reviewed Edita evaluation as the leading food producer plans to increase its production capacity by 36% by 2021.
Edita also unveiled its intention to increase selling prices in order to maintain its high profit margins following the slowdown of demand after the devaluation of the Egyptian pound against the US dollar.
Beltone also expects that Edita will achieve profits margin between 19.3% and 30.2% up to 2021 amid its remarkable growth of revenues that reflected at its free cash flows.
Beltone believes that Edita may raise employees’ salaries by 30% in 2017 and by 20% in 2018 in order to face the inflation pressures.
