Cairo – Mubasher: Pharos research stated in a recent research note that Madinet Nasr for Housing and Development (MNHD) stands out as its top pick in the real estate sector.
The research unit set Madinet Nasr for Housing fair value (FV) at EGP20.39 per share, while assigned a buy recommendation for the company’s stock.
Pharos research said the current share price of the stock of Madinet Nasr for Housing does not fully encompass the value of its two strategically located land plots, Taj City (previously named Teegan), a 3.5m sqm land plot located across from Cairo International Airport and Sarai (formerly dubbed KM45), a 5.5m sqm land plot located further down the Suez Road.
Moreover, the current market price EGP 12.75 seems to reflect only the value of the Taj City residual land bank and the firm’s development projects, mostly neglecting Sarai, pointed out the research note.
Market volatility has definitely affected investor sentiment, with market prices discounting visible short-term cash flow drivers and completely disregarding longer-term value generators, such as Sarai in this case, added the note.
