GWA Group Limited

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

GWA Group Limited (ASX: GWA) is involved in the research, designing, import and marketing of building fixtures and fittings to residential and commercial premises.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders: The top 10 shareholders together form ~42.31% of the total shareholding. Perpetual Investment Management Limited and The Vanguard Group, Inc., are holding a maximum stake in the company at ~9.94% and ~5.55%, respectively.

1.4 Key Metrics:

During 1HFY22, the company recorded EBITDA margin of 22.8% against 21.4% in 1HFY21. In addition, asset turnover ratio for the 1HFY22 stood at 0.30x as compared to 0.28x in 1HFY21.

Section 2: Business Updates and Financial Highlights

2.1 Business Updates:

2.2 Insights of 1HFY22:

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative)

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 data in this report has been partly sourced from REFINITIV

Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the analysis has been achieved and subject to the factors discussed above alongside support levels provided.

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.

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.

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

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