Beximco Pharma announced their results for 2015 today. The company had a solid year and managed to grow revenues with 15.7% while export sales grew a whopping 68.3% (starting from a very small base though). Thanks to the solid performance of Beximco since I bought it I have made a nice profit on paper, but the discount between the shares that trade in Bangladesh and the London GDRs has barely budged in the meantime and is at the moment of writing 62%. Because of this huge gap Beximco is currently my highest conviction idea, and also one of my biggest positions. By buying the stock in London you buy the company at a 6.4x P/E ratio while investors in Bangladesh are willing to pay 21.2x.

It’s obvious that we don’t have to expect that this gap will close anytime soon, but meanwhile we get paid a nice dividend that has been growing the past years. I think it’s a deal that is too good to pass up on. The graph below shows the historical growth in earnings/share and equity/share (in Bangladeshi Taka). That looks pretty sweet to me for a 6.4x P/E company!

Disclosure

Author is long BXP.L