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Why has IPD Group (IPG) fallen?

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Why has IPD Group (IPG) fallen?

A Question for the weekend edition please. Why has IPD Group (IPG) share price fallen and do you think it is a good buy at these levels?

Answer

Hi Angela,

For subscribers not familiar with IPD Group (IPG) its as $320mn NSW based company specialising in the distribution and servicing of electrical infrastructure products, complementing its product offerings, IPG also provides a suite of service options.

The stock has struggled through 2025 due to concerns around its 2nd half although the first half read well: The company reported record revenue of $176.9 million (+46.6%) and profit (NPAT) of $13.3 million (+40%).

  • The full-year guidance implied a weaker second half. Specifically, the projected earnings before interest and taxes (EBIT) for H2 FY25 were expected to decline by 7.5% compared to H1, which raised concerns about the company’s growth trajectory.

However, back around $3 we believe the stock is representing reasonable value trading on 12.4x and forecast to yield more than 4% fully-franked.

NB We caution the stock doesn’t trade huge volume.

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IPD Group (IPG)
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