This report is an updated version of the report published on 22^nd June 2022 at 4:20 PM (GMT +10)

BAP Details

Bapcor Limited (ASX: BAP) is engaged in the core business of automotive aftermarket. Its businesses cover the entire aftermarket supply chain spanning across Trade, Commercial Vehicles, Specialist Wholesale & Retail.

Solid Financial Performance in H1FY22 (For the Period Ended 31 December 2021)

Exhibit 1: Performance Trend

Source: Analysis by Kalkine Group

Key Metrics

The company’s EBITDA margin and ROE grew sharply in FY21 over FY20. However, the company’s current ratio reduced to 1.88x in FY21 from 1.98x in FY20 and from 2.18x in FY17. Notably, Debt to Equity ratio improved significantly to 0.41x in FY21 compared to 0.74x in FY17, depicting reasonable leverage position of the company.

Exhibit 2: Key Financial Metrics

Data Source: Analysis by Kalkine Group

Top 10 Shareholders: The top 10 shareholders together form 46.19% of the total shareholding while the top four constitute the maximum holding.

Exhibit 3: Top 10 Shareholders

Data Source: Analysis by Kalkine Group

Valuation Methodology: EV/Sales Based Relative Valuation (Illustrative)

Technical Overview:

Chart:

Source: REFINITIV

Note: Purple Color Line Reflects RSI (14-Period)

Stock Recommendation

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 where-in 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 where-in 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: It is a level to protect further losses in case of unfavourable movement in the stock prices