Simorgh Raised Bulk Egg Prices 12.5% and Tripled Six-Month Profit; Rasad Holds a Buy Call With a 5,699-Rial Target (Sunday, October 4, 2026)

Simorgh, an egg producer listed on the Tehran Stock Exchange's first market, reported audited six-month net profit of 9,127 billion rials for the period ended June 21, 2026 (filed on Codal on September 12, 2026), roughly triple the 2,280 billion rials it earned a year earlier. At the same time, Sahmino's Rasad desk has held a buy call on the stock since Saturday, October 3, with a 74 percent probability, a 5,699-rial target and a 4,981-rial invalidation level.

Background

Simorgh operates in the Tehran Stock Exchange's "agriculture and related services" industry, and its core product is bulk eggs, which the company disclosed account for 85 percent of last fiscal year's sales. Egg prices in Iran are set under permits from the exchange's own pricing commission, a structure that cuts both ways: it can lift margins quickly, but any further increase is not guaranteed. The stock carries a market capitalization of about 151 trillion rials (as of October 4, 2026) and averages close to 33 million shares a month, placing it among the more liquid agricultural names on the exchange.

Numbers

• Six-month net profit (period ended June 21, 2026, audited): 9,127 billion rials, versus 2,280 billion rials a year earlier (up 300 percent). Source: Codal income statement, tracing number 1593765.
• Six-month operating revenue: 58,061 billion rials, versus 24,613 billion rials (up 136 percent).
• Six-month earnings per share: 313 rials, versus 78 rials a year earlier.
• Bulk egg prices rose from 2,000,000 to 2,250,000 rials (up 12.5 percent) effective September 7, 2026, a day after the pricing commission's permit. Source: Group A material disclosure, tracing number 1595324.
• P/E at the October 3, 2026 close of 5,110 rials: 10.08 on the exchange board versus the agriculture sector's 6.92 average (about 1.5 times); Sahmino's own trailing twelve month P/E from filed statements is 9.95.
• One month return through October 3: 4.93 percent; the stock sits roughly 15 to 17 percent below its 52 week high of 6,170 rials. As of this report on October 4, the shares trade at 5,210 rials, up 1.96 percent.
• Net retail flow over the last 20 sessions: an outflow of about 654 billion rials; retail buyer strength reads 0.43, below the 1.0 threshold.
• At its July 2, 2026 assembly, for the fiscal year ended December 21, 2025, Simorgh approved a cash dividend of 42 rials per share, a 15 percent payout of that period's 279-rial EPS, retaining most of its profit.

Drivers

The main driver is the 12.5 percent bulk egg price increase from mid September, which lands directly on a product line that makes up 85 percent of sales and, combined with higher volumes, pushed six-month operating revenue up 136 percent. Production costs rose too: the income statement shows six-month production costs up 120 percent, so revenue growth slightly outpaced cost growth and operating margins improved. Rasad's desk logged this as a buy call from the October 3 session with a 74 percent probability, based on 959 hits out of 1,286 comparable setups in the market's current "calm uptrend" regime.

Outlook

Two cautions belong in this picture. First, the base effect: year-earlier profit of 2,280 billion rials was itself low, so part of the 300 percent jump reflects a small base rather than purely structural improvement. Second, regulatory pricing risk: because egg prices require the pricing commission's approval, a further increase is not guaranteed, and if the government moves to contain food inflation, Simorgh's commission-driven pricing could stall. The stock's P/E of about 10, roughly 1.5 times the sector average, suggests the market has already priced in part of this growth, and retail money has been net negative over the last 20 sessions. Together, these narrow the margin for error on this call.

Bottom line

With six-month profit roughly tripled and a clear driver (the 12.5 percent bulk egg price increase), Simorgh sits among Rasad's active buy calls: the desk sees it rising toward a 5,699-rial target over the next 15 trading sessions, as long as the closing price holds above the 4,981-rial invalidation level. Against that opportunity, last year's low comparison base and the regulated nature of egg pricing belong in any decision.

What to watch

• Simorgh's Mehr (October) monthly activity report on Codal, to see whether the new egg price keeps lifting sales.
• Any fresh pricing commission permit on egg or feed input prices.
• Whether the closing price breaches the 4,981-rial invalidation level, which would void the current Rasad call.
• The direction of retail flow; continued outflows despite rising profit would be a reason for more caution.

Glossary

• Price to earnings ratio (P/E): share price divided by earnings per share; it shows how many years of current profit the market is paying for. Comparing it with the sector average shows whether a stock is expensive or cheap next to its peers.
• Invalidation level: the price at which, if the stock closes below it, Rasad's buy call is no longer valid and the thesis behind it has failed.
• Rasad buy call: the output of Rasad's decision model for one stock on one session, with a price target, an invalidation level and a hit probability drawn from a historical sample of similar setups; it is neither a guarantee nor investment advice.