Equity Analysis /
Egypt

EGAL: Margin decline a key concern

    Tellimer Research
    1 February 2018
    Published byTellimer Research
    While we maintain our FV of EGP72.5/share, we downgrade our recommendation to Equalweight, given the limited upside potential. It is notable that electricity cost is a key component for EGAL that would negatively impact margins over the forecast horizon, due to the expected cuts in energy subsidies. EGAL is currently trading at FY17/18 P/E of 11x and EV/EBITDA of 5.6x.