Skellerup Holdings Limited

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Skellerup Holdings Limited (NZX: SKL) is a New Zealand-based company, engaged in designing, manufacturing, and selling engineered polymer products and vacuum systems for customers in dairy rubber ware, water, and related infrastructure. The operations of the group are spread across the USA, Europe, Australia, and New Zealand. 

Kalkine’s Investor Report covers the Key Financial Metrics, Risks, Outlook, 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 have been highlighted in the chart, which together form ~20.91% of the total shareholding.

1.4 Key Metrics:

The company posted a EBITDA margin of 22.9% in H1 FY 2024. Following are the other key metrics:

Section 2: Business Updates and Financial Highlights

2.1 Business Update:

2.2 Financial Highlights

Section 3: Key Risks and Outlook:

3.1 Dividend History:

SKL has declared 6% rise in the interim dividend to 8.5 cps, imputed 50% (the same level as in the pcp).

Section 4: Stock Recommendation Summary:

The stock has witnessed a decline of ~6.5% in six months. The stock has a 52-week high and 52-week low of NZD 5.19 and NZD 4.03, respectively.

4.1 Recommendation

SKL Daily Technical Chart, Data Source: REFINITIV

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 April 15, 2024. 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.

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 unfavorable movement in the stock prices.

Disclaimer

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