CSR Limited

Section 1: Company Overview and Fundamentals Insights

CSR Limited (ASX: CSR) is an ASX listed manufacturer and supplier of building products, and aluminum for residential and commercial constructions in Australia and New Zealand. The portfolio of products includes bricks, cement, plasterboards, concrete, insulation, ventilation products, among others. It caters to various sectors including commercial, residential, institutional, educational, healthcare, and public building sectors.

Upcoming Update: On 10 May 2023, CSR expects to announce its FY23 results for the year ended 31 March 2023.

1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~34.10% of the total shareholding. State Street Global Advisors Australia Ltd. And The Vanguard Group, Inc. are holding maximum stakes in the company at ~5.31% and ~5.08%, respectively.

1.4 Key Metrics: On the back of financial growth, the total dividend per share grew to 16.5 cents in H1 FY23, compared to 13.5 cents in H1 FY22. Below is captured other metrics:

Section 2: Business Updates, Financial and Operational Highlights

2.1 Recent Business Updates:

2.2 H1 FY23 Results Highlights (for the period ended 30 September 2022): Below mentioned are some key financial highlights:   

2.3 Operational Performance: The image below depicts the improved safety performance and bifurcation of Group EBIT by business segment.

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

The stock has witnessed a decline of ~4.29% in last 1 month and over the last 6 months, stock price has surged ~4.03%. The stock has a 52-week low and 52-week high of AUD 3.930 and AUD 6.170, respectively and is currently trading slightly lower than the average of 52-week high-low.

(Source: REFINITIV, Analysis by Kalkine Group)

4.2 Fundamental Valuation

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

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 5 April 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: 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.

Note 4: Dividend Yield may vary as per the stock price movement.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclaimer

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