Cairo – Mubasher: Pharos Research has raised their target price (TP) for Arabian Food Industries Co (Domty) to EGP 13.18, maintaining ‘Overweight’.
Domty has been able to achieve a better-than-expected profit margin in the first quarter of 2018, recording a consecutive recovery in margins on a quarterly basis, according to a recent report issued by the research firm on Thursday.
Gross margin of the Egyptian dairy products firm is forecast to grow to 24.4% in 2018, the report pointed out.
Domty had previously posted a 140% year-on-year hike in consolidated profits during the full-year 2017 due to a growth in sales, recording a bet profit of EGP 61.52 million from EGP 25.5 million in 2016, including minority shareholders’ rights.
The company’s board of directors had proposed retaining 2017 profits, except for employees’ shares.
