NuWays AG Maintains BUY Rating on INDUS Holding AG

NuWays AG has reiterated its BUY recommendation for INDUS Holding AG, assigning a target price of EUR 36.00. The evaluation comes amid a challenging macroeconomic environment, influencing first and second-quarter performance. Despite these hurdles, the outlook for the second half of the year remains positive.

During Q2, INDUS Holding AG's sales are expected to reach €437 million, reflecting a 3.6% drop year-over-year, with an EBIT of €32.1 million and an EBIT margin of 7.3%. The Materials segment faces pressure from decreased raw material prices and customer pricing demands, particularly affecting Betek, its largest portfolio company. Sales in this segment are likely to decline by 10% year-over-year.

Conversely, the Engineering segment is projected to see a 6.1% sales increase, although margins will face slight pressure due to changes in the product mix. The Infrastructure segment might experience a moderate sales dip of 5.2%, but maintains a strong EBIT margin supported by efficiency improvements.

INDUS Holding AG remains attractive with forward EV/EBIT at 7x, an expected dividend yield of 5.2%, and robust free cash flow. NuWays AG's recommendation underscores these financial fundamentals.