- Vostok Nafta has divested all O&G assets and now is a pure play on the market-leading Russian classified ads company Avito.
- Avito has generated growth rates of 100%+ and EBITDA margin of 46%. Similar business models in other countries indicate sustainability of high growth and high margins for market leaders.
- Current market valuation assumes reasonable growth/margin rates. Historical performance and peer comparison indicate that Avito could deliver above these assumptions.
- A potential IPO of Avito would serve as a catalyst for Vostok Nafta share price.
- As a pure play on Avito, Vostok Nafta appears to be a good opportunity for those interested to invest in Russia’s internet and e-commerce penetration growth.