COSOL Limited

Section 1: Company Overview and Fundamentals Insights

1.1 Company Overview

An Australian based-based company, COSOL Limited (ASX: COS), is a global provider of software and digital services solutions to asset-intensive industries. COS digital solutions include RPConnect, Evergreen, Copernicus, and AddOns.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders: The top 10 shareholders together form ~59.72% of the total shareholding. Johnston (Stephen Edward Oliver) and Lewis (Geoffrey James) are holding a maximum stake in the company at ~17.09% each, respectively.

1.4 Key Metrics:

During 1HFY22, the company recorded a net margin of 11.5% against 9.1% of the Industry Median. In addition, the EBITDA margin for the half-year period stood at 26.6%, as compared to 24.3% of the Industry Median.

Section 2: Business Updates and Financial Highlights

2.1 Business Updates:

 2.2 Results Highlights of 1HFY22 (Period Ended 31 December 2021): Net debt increased to AUD 10.30mn in 1HFY22 compared to AUD 0.96mn in 1HFY21. The rise in net debt was to fund the acquisition of Clarita Solutions and deferred consideration.

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

4.2 Stock Summary

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 15, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.

Disclaimer

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