INDUS Holding AG: Positive Outlook Despite Economic Challenges

INDUS Holding AG has received a "Buy" recommendation from NuWays AG, with a target price of €34 over the next 12 months. Despite macroeconomic hurdles in FY24, the forecast for FY25 appears robust, thanks largely to strategic capital allocation. Sales growth is projected in the low to mid-single digit percent range year-over-year, reaching €1,810 million, bolstered by acquisitions like Kettler GmbH.

The EBIT margin is expected to rise to 8.3% due to a favorable product mix in the Engineering segment. However, the Materials segment faces ongoing challenges from competitive pricing pressures. Management's improved capital allocation includes acquiring niche players and share repurchases, signaling a focus on value creation over mere growth. The company's prudent investment in high-margin acquisitions aligns with this strategy.