Agriculture
Astarta 2010 IFRS: Strong and Growing - Astarta has disclosed its audited financials for 2010 today. Astarta garnered USD 293.4mn in revenue in 2010, which is 54% higher than USD 190.0mn from a year before. Gross profit increased by 86% YoY to USD 121.5mn, implying gross margin of 41%. EBITDA surged 86% YoY to USD 132.5mn, implying a 45% margin. Astarta came up with a net profit of USD 105.2mn, or USD 4.21 a share. This is 148% higher compared to the EPS of USD 1.69 earned in 2009. Astarta’s stock has been oversold, in our opinion. Currently the stock trades at 2011E P/E of 5.6x, a 65% discount to international peers’ 2011E P/E average of 16x, and a 40% discount to Ukraine Agro peer’s 2011E P/E of 9.4x. We reiterate the BUY rating with the target price of USD 35 per share.
