Cairo-Mubasher: NBK Capital reiterated a ‘Buy recommendation on Juhayna Food Industries, setting the stock fair value at EGP 9.70.
The company has EGP 2 billion in debt, as of the first half of 2015, of which around 70% was of a short-term nature, and a net debt-to-equity ratio of 0.7x, stated NBK Capital..
NBK Capital views this development positively as it strengthens Juhayna’s balance sheet.
The leading manufacturer of dairy products has had a very strong start in the first half of the current year with a substantial recovery in operating margins on easing raw material costs, noted NBK Capital.
Earlier today, Juhayna announced that it has secured three medium-term loans for a total of EGP 480 million to enhance its working capital position and refinance existing debt with facilities whose tenure better matches the pace of its ongoing expansion.
