INDUS Holding AG: Recent Financial Analysis and Outlook

A recent study by NuWays AG on INDUS Holding AG, based on the preliminary results of the 2023 fiscal year, highlights a significantly higher than expected Free Cash Flow (FCF) generation at 190 million euros. Despite an unfavorable economic environment in the construction sector, sales remained stable at 1.80 billion euros. The company also announced a 4.1% share buyback at 23 euros.

INDUS's business segments have shown varied performances, with slight growth in the engineering sector and stability in infrastructure despite sectoral slowdown. The materials segment recorded a modest revenue decline but a significant increase in EBIT due to price hikes. This strong cash generation allows INDUS greater financial flexibility for acquisitions and dividends.

Management anticipates revenues for the 2024 fiscal year to be between 1.85 and 1.95 billion euros and an EBIT of 145 to 165 million euros, reflecting adaptability despite complex market conditions. INDUS is currently valued well below its historical average, justifying a buy recommendation with a target price raised to 36 euros.