Cairo – Mubasher: Pharos Research has maintained ‘Euqlaweight’ for Eastern Co’s stock on a fair value (FV) of EGP 200 per share.

The FV has been updated due to the changes in paid-in capital raised to EG P2.25 billion from EGP 1.5 billion to be distributed over 450 million shares, Pharos said in a research note on Wednesday.

The research firm forecast Egypt's monopoly cigarette maker will maintain its debt-free capital structure as net cash reached high levels.

In April, the board of the Egyptian tobacco firm had approved to raise the company’s capital to EGP 2.25 billion, instead of EGP 1.5 billion through reserves.

In March, the extraordinary general meeting (EGM) had approved splitting stock by 1:3 ratio to become EGP 5, instead of EGP 15.

The financial indicators of Eastern Co had shown a 156.27% year-on-year hike in profits for the nine-month period ended March 2018.

Net profit amounted to EGP 3.4 billion during the July-March period of 2018, compared to EGP 1.3 billion 1.3 billion in the prior-year period.

By 12:59 pm Cairo time, Eastern Co’s stock fell 1.71% to EGP 172.17.