Viva Energy Group Ltd

Section 1: Company Overview and Fundamentals Insights

Viva Energy Group Ltd (ASX: VEA) is an ASX listed commercial services and energy infrastructure business with a history of 120 years in Australia. It also operates a convenience and fuel network of almost 900 stores across Australia, and supplies fuels and lubricants to a total network of nearly 1,500 service stations. Kalkine’s Resources Report covers the Investment Highlights, Key Financial Metrics, Risks, 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 together form ~43.90% of the total shareholding. VIP Energy Australia BV and Pendal Group Limited are holding maximum stakes in the company at ~28.95% and ~5.27%, respectively.

1.4 Key Metrics: VEA delivered EBITDA of AU$713 million during FY23, reflecting its second-best earnings result as a listed entity, following the record year in FY22. Below is captured other metrics:

Section 2: Business Updates, Financial and Operational Highlights

2.1 Recent Business Updates:

2.2 Results Highlights: Below mentioned are some key financial highlights:   

2.3 Historical Financial Trend

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

The stock price has shed around 5.34% in 1 month; however, in the past 1 year, it has given a gain of around 7.07%. The stock has a 52-week low and 52-week high of AUD 2.730 and AUD 3.865, respectively. VEA was previously covered in a report dated ’12 June 2024’.

 (Source: REFINITIV, Analysis by Kalkine Group)

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: 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 10 July 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.

Note 4: Dividend Yield may vary as per the stock price movement.

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.