Dekel Agri-Vision plc (LON:DKL) is the topic of conversation when DirectorsTalk caught up with Theo Bache, Research Analyst at Arden Partners to discuss the latest company update.
Q. Dekel has announced record CPO Production volumes, what other key themes did you note?
A. We are greatly encouraged that Dekel have reported positive incremental numbers on all their production and sales numbers for the quarter vs Q1 2020. Dekel are in the midst of a fantastic high season and the leading Rotterdam price is filtering its way into their local market and Dekel are capitalising on this with outstanding production numbers.
Q. How do you see the outlook for Dekel?
A. The outlook is bright for Dekel. I am impressed by the quality of management whom I have spoken to, they have a clear and straight forward approach; be a first class diversified operator in the region, execute on the key fundamentals and look after the smallholders in a competitive market.
Q. How do you see the company in terms of a valuation?
A. As the company approaches profitability this year and making good on their promises, I believe that Dekel offer investors a very reasonable price for a diversified commodity pure play. Both Cashews and Palm Oil have structural drivers with little correlation and so I see the increasing cashew nut processing plant utilisation this year as a short term growth catalyst.