<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Matco Foods Limited (MATCO), engaged in processing and export of rice, is scheduled to go for book building on January 23-24, 2018. Floor price of PKR 26 per share has been set, which gives it a trailing P/E multiple of 8.5x, which is lower than its peers operating in Food sector at an average P/E of 18.3x.However, there is no local listed company operating is rice industry. We like Matco because i) it&rsquo;s undergoing expansion in it Rice Glucose/ Syrup and Rice Protein Plant, ii) except for one listed entity namely Habib ADM, it&rsquo;s competitors are only small, family owned business giving it supplier power, iii) it is the largest rice exporter operating in Pakistan and hence stands to gain from PKR devaluation, and iv) it has a diversified por...
