Seven Group Holdings Limited

Section1: Company Overview and Fundamental Insights

1.1 Company Overview:

Seven Group Holdings Limited (ASX: SVW) operates through various segments WesTrac, Coates Boral, AllightSykes, SGH Energy, Beach Energy and Seven West Media. Through its segments, SVW offers services like engineering, mining and resources, infrastructure, manufacturing, construction, CAT equipment dealing, etc.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders collectively form ~65.87% of the total shareholdings. North Aston Pty. Ltd. holds the maximum number of shares with ~34.17% shareholding, followed by Ashblue Holdings Pty. Ltd. with ~16.37%, as depicted in the chart below: 

1.4 Key Metrics:

The company’s net margin has increased from a low level of ~1.7% in 1HFY20 to ~27.6% in 1HFY22. Moreover, it had witnessed a steep rise in ROE reaching to ~25.1% in 1HFY22.

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: P/E 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 decision should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and 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.

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