Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Amcor plc (NYSE: AMCR) is a packaging company. The Company is engaged in developing and producing solutions across a variety of materials for food, beverage, pharmaceutical, medical, home and personal-care, and other products. The Company operates through two segments: Flexibles and Rigid Packaging.

Kalkine’s Diversified Opportunities Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Stock Performance:

• The stock has given a return of 8.95% in the last three months as well as given a return of 12.68% in past six months.
• The stock is in its lower band of its 52-week range of USD 10.45 and 52-week low price of USD 8.45. Post the announcement of Q3FY24 results the stock has given a return of 14.36% with the current price broken above an important resistance zone of USD 9.50-USD 10.
• The price is currently trading above both its long-term (200-day) SMA and its short-term (50-day) SMA , with the current RSI of 74.99.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Top 10 shareholders:

The top 10 shareholders together form ~27.85% of the total shareholding, signifying diverse shareholding. State Street Global Advisors (US), and BlackRock Institutional Trust Company, N.A. are the biggest shareholders, holding the maximum stake in the company at ~6.55% and ~5.90%, respectively.

1.4 Key Metrics:

Throughout the period spanning from 2019 to 2023, AMCR has demonstrated consistent and favorable financial performance, underscoring its resilience and effectiveness in navigating market dynamics:

The company's revenue exhibited significant growth, increasing from USD 9,458 million in 2019 to USD 14,694 million in 2023, reflecting AMCR's adeptness in capitalizing on market opportunities and driving revenue expansion. Concurrently, operating profit experienced a notable upward trend, rising from USD 792 million in 2019 to USD 1,508 million in 2023, indicative of AMCR's effective management strategies and initiatives aimed at enhancing profitability. Despite minor fluctuations, the operating margin remained robust throughout the period, fluctuating between 7.97% and 10.27%, with a noteworthy peak of 10.26% in 2023, highlighting the company's consistent focus on maintaining operational efficiency and maximizing profitability amidst changing market conditions.

Section 2: Business Updates and Corporate Business Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

2.2 Insights of Q3FY24:

Section 3: Key Risks & Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance:

• The stock has given a return of 8.95% in the last three months as well as given a return of 12.68% in past six months.
• The stock is in its lower band of its 52-week range of USD 10.45 and 52-week low price of USD 8.45. Post the announcement of Q3FY24 results the stock has given a return of 14.36% with the current price broken above an important resistance zone of USD 9.50-USD 10.
• The price is currently trading above both its long-term (200-day) SMA and its short-term (50-day) SMA , with the current RSI of 74.99.

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is May 08, 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: The report publishing date is as per the Pacific Time Zone.

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 against further losses in case of unfavorable movement in the stock prices.