IMDEX Limited

1.1: Company Overview: Global mining-tech company IMDEX Limited (ASX: IMD) is engaged in offering a broad range of drilling optimisation products, rock knowledge sensors and real-time data and analytics. The product offerings are directed towards drilling contractors and resource companies. Kalkine’s Investor Report covers the Investment Highlights, Management Insights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.   

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

1.3: Top 10 Shareholders: The top 10 shareholders together form ~38.75% of the total shareholding. L1 Capital Pty Ltd. and Vanguard Investments Australia Ltd. are holding maximum stakes in the company at ~14.43% and ~5.01%, respectively.

1.4: Key Metrics: IMD registered an asset turnover ratio of 0.50x in 1HFY23 compared with 0.28x of industry median. Below is captured the metrics showing the trend of net income and current ratio since 1HFY21:

2.1: Recent Business Updates:

2.2: Financial Insights:

2.3: Historical Financial Trend:

4.1: Price Performance and Technical Summary

The stock price has gone up by ~6.79% in the last one month and over the last 6 months, stock prices declined by ~20.45%. The stock has a 52-week low and 52-week high of AUD 1.707 and AUD 2.640, respectively, and is currently trading below the mid-range of the 52-week-high-low levels. IMD was last covered in a report dated ’31 October 2022’.

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 7 August 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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