Original-Research: INDUS Holding AG (von Parmantier & Cie. GmbH): Buy

Classification of Parmantier & Cie. GmbH to INDUS Holding AG

Company Name:	INDUS Holding AG
ISIN:	DE0006200108
Reason for the research:	Update Q1 2025
Recommendation:	Buy
from:	19.05.2025
Target price:	32,25 Euro
Target price on sight of:	12 month
Last rating change:	no change
Analyst:	Daniel Großjohann, Thomas Schießle

Q1 2025 impacted by economic environment – indirect consequences of US tariff policy lead to forecast adjustment

The Q1 figures reflected economic and seasonal effects. Sales (€402.4 million; -1.9%) and adjusted EBITA (€24.9 million; -21%) were weaker than in Q1 2024, as expected. A few days before the figures were published, INDUS had already referred in an ad hoc announcement to supply chain problems indirectly attributable to US tariff policy. While INDUS is protected against US tariffs by a local-to-local strategy, Chinese countermeasures – specifically export controls on tungsten – have caused uncertainty regarding future tungsten deliveries at its highest-revenue subsidiary, BETEK. We continue to expect an economic recovery in the second half of the year, but are adjusting our revenue forecast for 2025. Even based on the updated estimates, INDUS is attractively valued with a 2025 P/E ratio of 9.9 and a dividend yield of over 5%.
Both order intake (€455.1 million; +2.6%) and order backlog (€664.5 million; +4.4%) showed growth at Group level in Q1. However, these are mainly attributable to two subsidiaries in the Engineering segment and are therefore of limited significance. Nevertheless, the sales guidance for the Infrastructure segment has already been raised slightly following a good sales performance in Q1.
INDUS strengthened its position in the second tier in Q1 with three acquisitions (HBS, Kettler and Electro Trading), investing a total of €11.2 million. The balance sheet remains solid, with an equity ratio of 38.8% as of 31 March 2025.
Q1 EPS of €0.63 (Q1 24: €0.38) was positively influenced by a one-off tax effect.
Outlook: For the 2025 financial year, INDUS is planning sales of between €1.70 billion and €1.85 billion (previously €1.75 billion to €1.85 billion), with adjusted EBITA now expected to be between €130 million and €165 million. This corresponds to an adjusted EBITA margin of between 7.5% and 9% (previously: 8.5% to 10%).


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This research report ('Investment Recommendation') was prepared by Parmantier & Cie. Research, with  contributions from Mr. Grossjohann, and is distributed solely by Parmantier & Cie. Research. It is  intended only for the recipient and may not be shared with other entities, even if they are part of the  same corporate group, without prior written consent. The report contains selected information and  makes no claim to completeness. The investment recommendation is based on publicly available  information ('Information'), which is considered correct and complete. However, Parmantier & Cie.  Research does not verify or guarantee the accuracy or completeness of this information. Any potential  errors or omissions do not create liability for Parmantier & Cie. Research, which assumes no liability for  direct, indirect, or consequential damages.
In particular, Parmantier & Cie. Research accepts no responsibility for the accuracy of statements,  forecasts, or other content in this investment recommendation concerning the analyzed companies,  their subsidiaries, strategies, economic conditions, market and competitive positions, regulatory  frameworks, and similar factors. While care has been taken in preparing this report, errors or omissions  cannot be excluded. Parmantier & Cie. Research, including its partners and employees, accepts no  liability for the accuracy or completeness of statements, estimates, or conclusions derived from the  provided information in this investment recommendation.
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