EFOODS: Expecting 14% Sequential PAT Growth

 

          We expect EFOODS to post PAT growth of 383% YoY to PKR1,046mn (EPS: PKR1.39) for 1HCY12

 

          For 2QCY12, we anticipate the company to state earnings of PKR560mn (EPS: PKR0.74), representing growth of 464% YoY and 14% QoQ

 

          The outgoing quarter witnessed an addition to EFOODS’ “Omung” portfolio with the launch of “Omung Lassi”. Our market intelligence suggests favorable response to the sweet flavored version

 

          Having incorporated updated price multiples for regional food producers and the broader market index in our relative valuation models for EFOODS, our Dec12 target price for the company has been revised upward to PKR75/sh

 

          We maintain our ADD stance on the stock, with an upside potential of 7% to its TP.  The company continues to present strong long term growth prospects in Pakistan’s FMCG space, which has shown sustainable sales CAGR of above ~20% for the last 5 years

EFOODS: Expecting 14% Sequential PAT Growth