Pact Group Holdings Limited

Section1: Company Overview and Fundamental Insights

1.1 Company Overview:

Pact Group Holdings Limited (ASX: PGH) provides speciality packaging solutions and caters to consumer and industrial sectors in New Zealand and Australia. It operates through three segments Packaging and Sustainability, Materials Handling and Pooling, and Contract Manufacturing Services.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders collectively form ~61.52% of the total shareholdings. Geminder (Raphael) holds the maximum number of shares with ~46.76% shareholding, followed by Investors Mutual Limited with ~6.54%, as depicted in the chart below: 

1.4 Key Metrics:

The company’s gross margin has maintained at a decent level of ~32.40%, and the current ratio has depicted an upward trend since 1HFY21.

Section 2:  Business Updates and Financial Highlights

2.1 Recent Developments: The below picture depicts the change in substantial shareholding made recently:

2.2 Key Takeaways from Recent Results:

Section 3:  Key Risks and Outlook

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Multiple Based Relative Valuation (Illustrative)

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: 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

Kalkine New Zealand Limited is authorised to provide general advice only. The information on this website does not take into account any of your investment objectives, financial situation or needs. Before you make a decision about whether to acquire a financial product, you should obtain the Product Disclosure Statement from the product issuer. You should consider the appropriateness of advice taking into account your own objectives, financial situation and needs and seek independent financial advice before making any financial decisions.