Prime investment research firm said it set its Fair Value -FV for Arabian Cement Co. at EGP19.99 per share, with 'accumulate" recommendation.

The research firm noted that its evaluation is based on discount cash flow model, where the stock has risk-free rate of 9.82% and interest rate risk of 6%.

Prime expects Arabian Cement to finish off the coal conversion strategy by the second half of 2015 , which in its turn will contribute in improving the company's productivity rates as well as reducing the cost of production compared to its industry peers that resume using of gas and fuel oil.

Arabian Cement operates with EGP 757 million capital, divided into 378 million shares at EGP2 par value each. The company produces nearly 10% of Egypt’s total cement production.