Agroton equity price may increase in the short-term
Agroton’s EV/EBITDA multiple of 1.1x promises a potential for an equity price increase in the short-term. This is stated by Alexander Paraschiy, Head of Research at Concorde Capital.
"However, due to the company’s poor corporate governance, we see the upside potential is limited. The company remains cash-rich and profitable but distributes nothing to minority shareholders," expert notes.
He adds that the company's high level of lending to related parties is a reason to worry about Agroton's sustainability.
Previously it was reported that Agroton net profit for 1H 2018 amounted to USD 11.8 million, which was USD 3.8 million (or 47%) more y-o-y.