Cairo - Mubasher: Pharos Research maintained its Overweight rating of El Sewedy Electric, and set the stock’s fair value at EGP 90, according to a recent report.
The research firm said on Sunday that El Sewedy Electric board’s suggestion to distribute cash dividends at EGP 4 per share for the first nine months of 2016 is due to lower capital expenditures.
“We believe that absence of major capex is the reason why the company is distributing dividends of EGP 893.6 million, which implies a payout ratio of 37%,” the report added.
“El Sewedy electric is set to be a net beneficiary from floatation, given its strong presence in export markets and its dollar denominated turnkey projects.”
