Tanzania Cigarette PLC (TCC)-Equity Research

TCC has remained profitable over the years with adequate assets to cover their liabilities and relatively low debt levels. The company has maintained great financial health. While it has paid regular dividends, it is worth noting that due to the high pay-out ratio, net income has not been consistently sufficient to cover the dividend.

The Discounted Cashflow method indicates that TCC is overvalued by about 56%. Relative assessment of the company further indicates that TCC is expensive based on both P/E and P/B ratios.

Based on this analysis, we recommend a SELL position on TCC.