Obtala Limited is an Africa focussed forestry and agriculture company with a goal of becoming one of Sub-Saharan Africa’s largest sustainable food and timber producers. Currently trading at 13.375p, a c.15 month low, Obtala shares look significantly undervalued. Our DCF derived target implies upside of 185%. In addition, the recent preference share issues by subsidiary Argento value Obtala’s effective 57% stake at c.£44 million (c.15p per share). This is 12% above the current market cap and effectively values the acquired Woodbois business and agriculture operations at less than zero. We retain our Conviction Buy stance and look forward to seeing further progress across the three divisions over the current financial year.
29 Jan 2018
Obtala - Forecasts and DCF model update
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Obtala - Forecasts and DCF model update
Woodbois Limited (WBI:LON) | 0.7 0 (-1.5%) | Mkt Cap: 29.9m
- Published:
29 Jan 2018 -
Author:
Richard Gill, CFA -
Pages:
3
Obtala Limited is an Africa focussed forestry and agriculture company with a goal of becoming one of Sub-Saharan Africa’s largest sustainable food and timber producers. Currently trading at 13.375p, a c.15 month low, Obtala shares look significantly undervalued. Our DCF derived target implies upside of 185%. In addition, the recent preference share issues by subsidiary Argento value Obtala’s effective 57% stake at c.£44 million (c.15p per share). This is 12% above the current market cap and effectively values the acquired Woodbois business and agriculture operations at less than zero. We retain our Conviction Buy stance and look forward to seeing further progress across the three divisions over the current financial year.