Almost 9.5 months ago in this very section (specifically on 5 August 2020), we were the first in the market to uncover the cheap valuation of B Investments [BINV]. Those who had followed our call back then would have pocketed a juicy 144% return in less than 10 months! That said, we still see more positive returns to be had in the stock, having published our Core Coverage Rote on the name yesterday. Our non-banking financials analyst Sherif El-Etr sees further hidden value to be unlocked in BINV which provides exposure to sectors that are not represented on the Egyptian Exchange (EGX). Indeed, BINV’s plans to float Ebtikar’s e-payment companies on EGX during H2 2021 should mean other prosperous divestments could be underway. Using a sum-of-the-parts approach, El-Etr reached a fair value of EGP16.4/share and a 12-month price target of EGP17.9/share, and hence the Overweight rating. For further details, please check out our Core Coverage Report.
POSITIVE
BINV: Further value could be unlocked with any upcoming divestments. We see an upside potential in excess of 20% from market price.