Capital Limited (DI) (CAPD)

Sector:

Mining

Index:

FTSE Small Cap

103.00p
   
  • Change Today:
    -2.50p
  • 52 Week High: 116.00p
  • 52 Week Low: 77.80p
  • Currency: UK Pounds
  • Shares Issued: 190.89m
  • Volume: 196,405
  • Market Cap: £196.62m

Canaccord Genuity initiates coverage on Capital Limited

By Iain Gilbert

Date: Monday 01 Aug 2022

LONDON (ShareCast) - (Sharecast News) - Analysts at Canaccord Genuity initiated coverage on Africa-focussed full-scope mining services company Capital Limited on Monday with a 'buy' rating and a 140.0p target price.
Canaccord Genuity said it believes Capital shares were "significantly mispriced" based on the group's "strong" growth outlook and pointed to four key reasons why investors should own the stock.

Firstly, Canaccord said Capital was "a dominant player", generating premium margins, while it also noted that the group was operating in a growing market, it had a "positive outlook" for key segments, and also pointed to the company's balance sheet strength.

"Capital operates the largest drilling fleet in Africa, with approximately 116 rigs, and operates at higher margins than peers. Mining services activity is picking up significantly and is set to rise further as commodity prices incentivise exploration activity. Further, the company is using its established position to diversify into segments with positive outlooks, including contract mining and laboratory services which accounted for roughly 22% of group revenue in FY21," said Canaccord.

The Canadian bank also noted that Capital's management had positioned the company for "significant growth" and, importantly, it now expects that most growth spending can be funded from internal cash flows.

"We see Capital as a well-run, growth-focused company operating in a fragmented market which acts as a degree of protection over the company's margins. The company is trading at an EV/EBITDA of ~2.2x for FY23E and ~1.6x for FY24E, compared to a historical industry average of ~3-4x over the last few years," said the analysts.



Reporting by Iain Gilbert at Sharecast.com

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

CAPD Market Data

Currency UK Pounds
Share Price 103.00p
Change Today -2.50p
% Change -2.37 %
52 Week High 116.00p
52 Week Low 77.80p
Volume 196,405
Shares Issued 190.89m
Market Cap £196.62m

CAPD Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
73.29% below the market average73.29% below the market average73.29% below the market average73.29% below the market average73.29% below the market average
89.31% below the sector average89.31% below the sector average89.31% below the sector average89.31% below the sector average89.31% below the sector average
Price Trend
86.57% above the market average86.57% above the market average86.57% above the market average86.57% above the market average86.57% above the market average
72.22% above the sector average72.22% above the sector average72.22% above the sector average72.22% above the sector average72.22% above the sector average
Income
68.6% below the market average68.6% below the market average68.6% below the market average68.6% below the market average68.6% below the market average
70.37% below the sector average70.37% below the sector average70.37% below the sector average70.37% below the sector average70.37% below the sector average
Growth
90.69% above the market average90.69% above the market average90.69% above the market average90.69% above the market average90.69% above the market average
82.09% above the sector average82.09% above the sector average82.09% above the sector average82.09% above the sector average82.09% above the sector average

What The Brokers Say

Strong Buy 3
Buy 1
Neutral 0
Sell 0
Strong Sell 0
Total 4
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

CAPD Dividends

  Latest Previous
  Interim Final
Ex-Div 01-Sep-22 07-Apr-22
Paid 03-Oct-22 10-May-22
Amount 1.30¢ 2.40¢

Trades for 27-Jan-2023

Time Volume / Share Price
17:07 5,000 @ 103.00p
16:35 448 @ 103.00p
16:35 205 @ 103.00p
16:35 26 @ 103.00p
16:35 8 @ 103.00p

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