Cairo – Mubasher: Pharos Research has reiterated their overweight recommendation on Al Ezz Dekheila Steel’s stock at a fair value (FV) of EGP 1,000 per share.
The Egyptian iron firm is expected to achieve a net income of EGP 2.1 billion in fiscal year 2018 and gross processing margins (GPM) to hover around 15.7%, according to a recent report by Pharos Research.
Al Ezz Dekheila Steel is currently trading at “FY18 P/E of 6.8x and FY18 EV/EBITDA of 5.0x,” the research firm said.
The board of the industrial conglomerate has proposed an EGP 668.2 million cash dividends to shareholders for 2017.
On Sunday, Al Ezz Dekheila Steel reported a 72% year-on-year decline in profits for the full-year 2017, registering EGP 362.4 million last year, down from EGP 1.3 billion in 2016.
Sales grew to EGP 34.37 billion in 2017, versus EGP 16.9 billion a year earlier.
Al Ezz Dekheila Steel’s capital amounts to EGP 1.33 billion distributed over 13.3 million shares at a par value of EGP 100 per share.
