Cairo – Mubasher: Pharos Research has raised their fair value (FV) for Arab Cotton Ginning’s stock to EGP 3.32 per share from EGP 2.86, recommending an ‘Overweight’.

Arab Cotton Ginning is likely to report a compound annual growth rate (CAGR) of total revenue of 14% during the period from fiscal year 2019/2020 to FY22/23, the Cairo-based research firm added in a recent report.

The company’s net income is expected to reach EGP 45 million in FY18/19, Pharos highlighted, projecting it to record a CAGR of 27.8% in the period between FY19/20 and FY22/23.

It is worth noting that Arab Cotton Ginning previously revealed it had turned to losses in the first half of FY18/19 with EGP 27.94 million, against a net profit of EGP 74.99 million in the same period of FY17/18, including minority shareholders’ rights.

The company’s revenues retreated to EGP 808.47 million in H1-18/19, versus EGP 895.25 million in the corresponding six-month period of FY17/18.