Cairo - Mubasher: Pharos Research has reiterated their overweight recommendation on Elsewedy Electric, with a fair value (FV) of EGP 111.5 per share, according to a recent report.

The research firm attributed its recommendation and evaluation to the declining margins, as it is expecting the gross profit margin to hover around 15% versus 25.8% recorded in Q1-17, as well as forecasting dividends per share to be around EGP 5 per share, implying a dividend yield of 6.1%.

“The key risks to our valuation are the working capital management, and the demand outlook for wires and cables in Saudi Arabia,” the report indicated.