I recently trimmed my position in Beximco Pharmaceuticals (LON:BXP) a bit since the discount between the share price in Dhaka and London has shrunk from the original 60% to 39% at the time of writing this. However, it remains my biggest position, so I continue to follow the stock closely. The company reported results for the third quarter of 2016 today. The press release doesn’t contain anything besides the raw financials, but those numbers look good.
Revenue grew with 11.2% compared to the same quarter last year while EPS grew with 22% from 1.04BDT/share to 1.27BDT/share. Note that my per share numbers are slightly lower than those reported by Beximco Pharma, because I’m already accounting for the stock dividend. The shares are currently trading ex-div for the 5% stock dividend, but probably because the dividend hasn’t formally been approved by shareholders (the AGM is the 19th this month) the new shares aren’t yet recognized in the financials. Even with the higher number of shares the stock remains relative cheap: trading at a 9.9x P/E-ratio while it has good growth prospects. Compare this to Dhaka where investors are valuing the same shares at a 16.4x multiple.
Author is long Beximco Pharma