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Data#3 Ltd (DTL)

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Question asked 05/07/2025

Data#3 Ltd (DTL)

Hi, could I please have your thoughtss on DTL please??

Answer

Hi Peter,

Data#3 Limited is a often ignored IT services and solutions provider that offers a range of services, including cloud solutions, modern workplace, security, data & analytics, and connectivity. DTL is basically unchanged in 2025, a very quiet and humble experience in such a volatile space. They delivered a solid performance in the first half of FY25 with security catching our eye:

Services: Gross sales increased by +19.3%, driven by heightened demand in security, cloud, and consulting services.
Infrastructure Solutions: a decline of -12.9% in gross sales, attributed to a subdued device market.

We like the outlook for DTL after management expressed confidence in continued sustainable growth for the full year, calling out strong demand in services, multi-cloud solutions, and AI – some hot areas here. This $1.2bn business is profitable, paying a dividend and not too expensive trading on a Est 25.4x valuation for FY25.

MM likes the direction in which Data#3 is transitioning, i.e. to higher-margin and recurring revenue streams, through Cloud and managed services, Cybersecurity consulting, AI and analytics and Public sector digital transformation

We like the risk/reward towards DTL below $8.

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Data#3 Ltd (DTL)

LAST UPDATED 03/07/2025 15:38

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