The Warehouse Group Limited

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

The Warehouse Group Limited (NZX: WHS) is one of the largest retailing groups in New Zealand. It consists of six core retail brands: The Warehouse, Warehouse Stationery, Noel Leeming, Torpedo7, 1-day and, TheMarket. Further, it has 260+ retail stores, online stores, and distribution centres in New Zealand.

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 forms ~74.53% of the total shareholding.

1.4 Key Metrics:

Notably, the company’s debt-to-equity ratio further improved to 1.89x in H1 FY 2022 from 2.11x in H1 FY 2021, depicting reasonable leverage position of the company. The company has posted decent gross margin and EBITDA margin of 34.7% and 9.5%, respectively in H1 FY 2022.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

2.2 Insights of 1HFY22:

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 decisions 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 analysis has been achieved and subject to the factors discussed above alongside support levels provided.

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

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