# Dekel Agri-Vision ‘potential for the shares to re-rate’ say WH Ireland

- Link: https://www.directorstalkinterviews.com/dekel-agri-vision-potential-for-the-shares-to-re-rate-say-wh-ireland/4121127038
- Published: 2023-09-11T07:49:01+01:00
- Author: Ethan Davis

**[Dekel Agri-Vision Plc](https://www.directorstalkinterviews.com/company/dekel-agri-vision-plc/dkl.l)**(
[LON:DKL](https://www.directorstalkinterviews.com/company/dekel-agri-vision-plc/dkl.l))
is the topic of conversation when DirectorsTalk Interviews caught up with analyst
at WH Ireland Nick Spoliar.

**Dekel Agri-Vision Plc has provided an August production update for its Ayenouan
palm oil project in Côte d’Ivoire, what were the key highlights in your view?**

Dekel’s production figures continue to indicate that this will be a strong year 
for the group’s palm oil operation, with palm oil production 38% ahead of last year
in August, following record figures for some months during the high season earlier
this year. While volumes have started to come down as Dekel enters the annual low
season, we see the cumulative production in the year to date and strong pricing 
still being realised as encouraging.

**How do today’s figures line up with your forecasts?**

Cumulative production in the year to date is well in line with our expectations 
for the full year, giving us a good degree of confidence for the full year financial
performance in the palm oil business.

**How do you see the company in terms of fair value?**

When operating at full capacity in FY2024, Dekel’s newly commissioned cashew processing
operation should deliver a step change in the group’s profitability and cash generation,
as this project goes from being a cash drain in recent years to a strong contributor
for the group. We see potential for the shares to re-rate as this project is successfully
executed and as the company reduces its borrowings following the completion of the
investment phase of its cashew operation. Our fair value stands at 9.5p.

Dekel Agri-Vision Plc (LON:DKL), is a West African agriculture company focused on
building a portfolio of sustainable and diversified projects.

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