Equity Analysis /

PACHIN: The future is bright; initiate with TP of EGP52.80 and Overweight recommendation

    Tellimer Research
    11 June 2018
    Published byTellimer Research
    Our DCF valuation yields a FV of EGP52.80/share, which implies 33% upside. This is driven by i) Egypt’s macroeconomic environment to drive coating industry growth, ii) mega projects driving construction and real estate activity, iii) consumer spending revival following EGP flotation shock, iv) government contracts offer opportunity to benefit from an increase in public spending, v) old factory land plot offers a significant upside to our valuation, once monetised.