If Cenergy (with a rally over 100%) was in the spotlight in 2023, this year seems to belong to ElvalHalcor, with the executive vice-president, Dimitris Kyriakopoulos, finally seeing the stock breaking its barriers.
Since the beginning of 2024, ElvalHalcor, a subsidiary of Viohalco Group, has recorded a rally of around 30%, having climbed from 1.85 euros/share to 2.40 euros/share. This level is the highest since April 2021, when the management proceeded with a placement for 6.6% of the shares. Since then, the company’s stock has been trading in a narrow range between 1.3 and 2 euros.
Recently, however, it seems that the actions of the Kyriakopoulos administration are beginning to bear fruit (a series of investments in critical sectors, improvement in the quality of shareholders, etc.), with the stock reaching 2.5 euros, i.e. the highest level since 2008.
The capitalization of ElvalHalcor is close to 900 million euros and the goal is to restore it to the level of 1 billion euros.
Despite the fact that the P/E ratio is moving at relatively high levels (almost 30x), at the same time the P/BV ratio falls short of 1x, as equity amounts to at least 960 million euros. This translates into a significant discount compared to similar companies abroad.
Provided that the valuation improves further, then it is not excluded that the management will begin to re-examine the possibility of a new placement, with the aim of improving the free float, which currently does not exceed 15% (Viohalco owns 84.78%).
