Lasco Distributors Limited Equity Report

Valuation 

Based on the factors mentioned above, our base case forecast for LASD is that they have a fair value of J$4.67.  The stock has a total return upside of 16.63% when compared to the current price of J$4.05. Given the underlying  economics of the Company coupled with the ongoing impact of the COVID-19 pandemic, Barita Investments  Limited’s recommendation on this stock is OVERWEIGHT

Business Economics 

The Company distributes one of the broadest range of fast-moving consumer goods under its own LASCO label and  other sub-brands such as Curves and iCool. The Consumer Division primarily distributes food, beverage, personal  care, baby care, adult incontinence, and home care products. LASCO also distributes Unilever’s home and personal  care portfolio with Breeze, Dove, St. Ives, Mistolin, and Axe. Another core supplier partner is Salada, with its brands  of high-quality Jamaican coffees; Jamaica Mountain Peak and Mountain Bliss 876, and their range of teas. The  Pharmaceutical Division distributes major international brands in ethical, over-the-counter (OTC), animal health  and equipment, and its private brand of generics under the LASMED brand name. 

LASCO’s route to market covers all core channels, including Supermarkets, Wholesalers, Small Shops, Schools,  Pharmacies, Government Institutions, and health care facilities across Jamaica.

 

Stock Lasco Distributors Limited
Last Price (J$) $4.05
Year to Date Return 26.56%
Dividend Yield 1.27%
Price/Book 2.20
Forward P/E 11.60
Estimated Fair Value (J$) $4.67
Estimated Shareholder Return Upside/Downside 16.63%
Recommendation OVERWEIGHT

As at July 15, 2021

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