Original-Research: INDUS Holding AG - from NuWays AG 10.03.2025 / 09:01 CET / CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group.

Original-Research: INDUS Holding AG (von NuWays AG): Buy

Original-Research: INDUS Holding AG - from NuWays AG

10.03.2025 / 09:01 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to INDUS Holding AG

     Company Name:                INDUS Holding AG
     ISIN:                        DE0006200108

     Reason for the research:     Update
     Recommendation:              Buy
     from:                        10.03.2025
     Target price:                EUR 34.00
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Christian Sandherr

Buybacks completed // expansionary fiscal policy to fuel growth

Topic: INDUS successfully completed its share buyback program and cancels EUR
1.1m treasury shares. Further, the announced EUR 500bn special funds for
infrastructure projects by the prospective German Chancellor Friedrich Merz
could have a significant impact on INDUS future growth.

Share buyback completed. On November 11th, INDUS announced a public tender
offer to buy back 700,000 shares at a price of EUR 21.65 per share as well as
an open market buyback program for up to 200,000 shares starting on December
2nd. While the tender offer was already completed in November, the open
market program was executed over the last months and ended successfully on
March 4th with an average price of EUR 21.20 for 200,000 shares in total. In
addition, INDUS retired 1.1m treasury shares (4.1% of total shares), which
were acquired in February 2024 to increase EPS and return cash to its
shareholders. The recently acquired 0.9m shares (3.5% of the new number of
shares) are still held as treasury shares and might be used for future M&A
activities.

This is positive news in our opinion, as we already flagged in our update
from January 10th, INDUS is clearly showing improvements in their way they
think about capital allocation, which is a crucial skill for every serial
acquirer. Not only has INDUS acquired these shares below the current stock
price (EUR 24.50) but also below our estimated intrinsic value of EUR 34, thus
offering attractive ROICs. Nevertheless, we would have liked INDUS to have
acted more decisively and bought back the full authorized 10% of the
outstanding shares.

Expansionary fiscal policy to fuel future growth. On March 4th, election
winner and prospective new Chancellor Friedrich Merz from the Christian
Democrats (CDU) as well as the Bavarian Christian Social Union (CSU) and the
Social Democrats (SPD) discussed a EUR 500bn special fund for infrastructure
investments over the coming 10 years, next to a sizable fund for defense. It
is planned to pass the law before the new government takes office. This
could substantially support INDUS' growth as c. 50% of its sales are from
Germany and many of its holdings would be involved in infrastructure
projects.

For instance, Betek (17% of sales) and Wirtgen, a subsidiary of John Deere
control together c. 65% of the road milling market. As road milling picks
last only for around 8 hours, customers are forced to promptly buy new tools
as more roads are getting refurbished. Aurora (5% of sales), which provides
HVAC systems for vehicles including buses, could benefit from investments in
public transportation. Other companies such as Hauff-Technik (5% of sales),
a provider of sealing systems for cables and pipes should benefit from new
public buildings (hospitals, airports, universities). Although this list is
by no means exhaustive, it gives an idea how INDUS' companies are affected
on a broad basis and that they can profit significantly not only from
infrastructure investments directly but also from the aftereffects for
the German economy as a whole.

We continue to like the stock and confirm INDUS as one of NuWays' Alpha
Picks. Reiterate BUY with an unchanged PT of EUR 34 based on FCFY'24e.

You can download the research here: http://www.more-ir.de/d/31934.pdf
For additional information visit our website:
https://www.nuways-ag.com/research-feed

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: [e-mail]
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
++++++++++
Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
++++++++++

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2097636 10.03.2025 CET/CEST