Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Halma PLC (LSE: HLMA) is a global group of life-saving technology companies. The company provides innovative solutions to various key problems facing the world currently. The company has more than 7,000 people over 20 countries and has significant operations in the UK, Mainland Europe, the USA, and Asia Pacific.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders: The top 10 shareholders have been highlighted in the chart below, which together forms ~31.91% of the total shareholding.

1.4 Key Metrics:

The company has delivered record results in FY22 with revenue surpassing £1.5 billion and profit £300 million for the first time driven by broad based growth across its sectors, regions and companies. Further, the company reported a healthy improvement in gross margin to reach 50.3% in FY22 from 49.8% in FY21. The ROE has also improved to 19.2% in FY22 from 17.7% in FY21.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

2.2 Insights of FY22:

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Per Share 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 not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 28, 2022. 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.

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.