National Industries Group Holdings (NIG), the largest industrial company in Kuwait and one of the blue chips, posted a huge loss of KD282 million for CY 2008 as opposed to a profit of KD209.4 million last year. In my analysis I take a closer look at Q4 results as the wave of defaults and plunge in the fair value in investments had hit most companies at the end of 2008, NIG’s Q4 loss was a brash KD383 million!
What’s more petrifying is that shareholder’s equity eroded by about 60% letting the group’s net worth to drop to KD486 million leaving book value per share at 0.386fils. Their loss per share was 0.224 fils which coincided with today’s closing price of 0.224 fils.
With a book value per share of 0.68 fils in 2007 and a market price of KD 1.680 (31st March ‘07) the stock was trading at a multiple of 2.47x P/BV but today it’s trading at 0.58x which can only indicate that the market is expecting more equity erosion.
(No Ratings Yet)
Loading ...Tags: Kuwait, national industries group, NIG
