ADH 1.96% $1.50 adairs limited

In one scenario where Adairs achieves 10-12% growth in profit...

  1. 87 Posts.
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    In one scenario where Adairs achieves 10-12% growth in profit before tax for next 2-3 years, I believe ADH at this level is bargain especially when we are looking at very low interest rates and bond yields. Westpac is expecting 0.75% by sept-oct, in these circumstances there is no reason ADH should be trading at PE of around 10 even with zero growth in PBT. 45m in PBT with market cap of 350m gives one the return of 12-13% a year.
    I think its very likely for ADH to achieve 10-12% growth with 6-7% organic and rest with new stores openings for next few years, even with lesser or no growth I think its fair to pay $2.70 per security, that is $450 market cap for $45m return before tax.
 
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$1.50
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-0.030(1.96%)
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Last update - 16.10pm 17/07/2019 (20 minute delay) ?
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$1.50
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