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This report is an updated version of the report published on 8 May 2025 at 1:41 PM AEST.
Company Overview
Company Overview: DigiCo Infrastructure REIT (ASX: DGT), an Australia-based company, is a diversified owner, operator and developer of data centers, with a global portfolio and broad investment mandate across stabilized, value-add and development opportunities. Its portfolio consists of 13 data centers across key Australian and North American markets with 238-megawatt (MW) of planned information technology (IT) capacity. Graincorp Ltd (ASX: GNC) is an ASX listed entity, which operates through two segments, Agribusiness and Processing. Kalkine’s Sector Report covers the Investment Summary, Sector Overview & Supporting Catalysts, Data Insights & Analysis, Financial Metrics, Financial Commentary, Risks, Outlook, Technical Analysis along with the Valuation, Target Price, and Recommendation on selected stocks.
Investment Summary
Sector Overview and Supporting Catalysts
Data Insights and Analysis
Index Performance
Investment theme and stocks under discussion (DGT, GNC)
After understanding the sector, let us now look at two companies from the REIT and Food sectors listed on the ASX. The price potential of the companies under discussion have been analysed based on Forward Price/Book Value based relative valuation and Price/Earnings based relative valuation method.
1. ASX: DGT (DigiCo Infrastructure REIT)
(Recommendation: ‘Speculative Buy’ at AUD 3.115; Potential Upside: Low Double-Digit; MCap: AUD 1.64bn)
DGT, an Australia-based company, is a diversified owner, operator and developer of data centers, with a global portfolio and broad investment mandate across stabilized, value-add and development opportunities. Its portfolio consists of 13 data centers across key Australian and North American markets with 238-megawatt (MW) of planned information technology (IT) capacity.
The stock has witnessed a correction of ~31.80% in last three months, and over the past one month, it has increased by ~25.40%. The stock has a 52-week low and 52-week high of AUD 2.280 and AUD 5.100, respectively and is currently trading below the 52-week high-low average.
2. ASX: GNC (Graincorp Ltd)
(Recommendation: ‘Hold’ at AUD 6.970; Potential Upside: Low Double-Digit; MCap: AUD 1.53bn)
GNC is an ASX listed entity, which operates through two segments, Agribusiness and Processing.
The stock has witnessed a correction of ~23.91% in last six months, and over the past nine months, it has decreased by ~20.73%. The stock has a 52-week low and 52-week high of AUD 6.340 and AUD 9.350, respectively and is currently trading below the 52-week high-low average. GNC was last covered in a report dated ‘10 April 2025’.
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 8 May 2025. 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: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
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.
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Past performance is not a reliable indicator of future performance.
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