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Pharos Research maintains ‘Overweight’ for Ibnsina Pharma on FV of EGP13.62/shr

Pharos Research maintains ‘Overweight’ for Ibnsina Pharma on FV of EGP13.62/shr
Pharos Research maintains ‘Overweight’ for Ibnsina Pharma on FV of EGP13.62/shr
Ibnsina Pharma
ISPH
-5.19% 2.56 -0.14

Cairo – Mubasher: Pharos Research has reiterated their ‘Overweight’ recommendation for Ibnsina Pharma’s stock based on a fair value (FV) of EGP 13.62 per share.

This was mainly driven by a deduction of EGP 2 per share of the FV due to a potential fine, Pharos said in a recent research note. 

Local pharmaceuticals firms have been accused of reducing credit and cash discounts granted to pharmacies on purpose, the research firm remarked.

Therefore, Ibnsina Pharma is projected to pay a fine as its appeal was accepted by the Cairo Court of Appeals and the first hearing is set for 19 May 19, 2018, Pharos added.

Ibnsina’s paid-in capital increased to EGP 180.5 million from EGP 168 million distributed over 722 million shares; hence, the research firm has also updated ‘Net Debt’ to reflect March-end figures.

Accordingly, Pharos had to reduce the stock’s FV to EGP 13.62 from EGP 15.00, according to the research note.

On Monday, Ibnsina Pharma reported a 46% year-on-year surge in profits for the first quarter of 2018, recording EGP 27.9 million from EGP 19.10 million.

Revenues doubled to EGP 2.9 billion in Q1-18, versus EGP 1.9 billion in the prior-year period.