Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Inmode Ltd is an Israel-based company. It creates, develops, produces, and markets minimally invasive, energy-based surgical aesthetic and medical treatment options. Physicians reconstruct subdermal adipose, or fatty, tissue using the company's own technology in a range of operations, including fat removal with concurrent skin tightening, face and body contouring, and ablative skin rejuvenation therapies.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Key Metrics:

INMD has comparatively performed better and more efficiently than its peers at all levels of operations, which can be seen through higher profitability margins at all levels of operations. Lastly, INMD generated above-average ROE in Q2FY22 of 10.30% p.a. as compared to an industry median of negative 0.1% for the same time.

1.4 Top 10 shareholders:

The top 10 shareholders together form ~35.50% of the total shareholding, signifying diverse shareholding. Mulholland (Stephen) and Kreindel (Michael) are the biggest shareholders, holding the maximum stake in the company at ~9.78% and ~4.17%, respectively.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

 2.2 Insights of Q2FY22:

Section 3: Key Risks

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: Price/Cash Flow per share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macro-economic 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 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 further losses in case of unfavourable movement in the stock prices.