Section 1: Company Overview and Fundamental Insights

1.1 Company Overview:

DGL Group Limited (ASX: DGL) provides chemical supply chain management solutions such as warehousing and distribution, and waste management. Through Environmental Solutions, DGL provides battery disposal services in Australia and New Zealand.

1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~63.93% of the total shareholding. Henry (Simon) and Milford Asset Management Ltd. holds a maximum stake in the company at ~54.04% and ~4.45%, respectively.

1.4 Key Metrics:

DGL holds a well-diversified portfolio of revenue streams and recent acquisition strategies have expanded active customer count to a considerable count.

Below highlighted the growth in active customers, spurt in properties owned (or leased) and owned trucks/trailers/tankers in 1HFY22.

Section 2: Business Updates and Financial Highlights

2.1 Recent Developments

2.2 First Quarter FY22 Performance:

Section 3: Key Risks & Outlook

Section 4: Valuation, Stock Recommendation Summary, Technical Table, and Price Chart

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1:Past performance is not a reliable indicator of future performance. 

Note 2:The reference date for all price data, currency, technical indicators, support, and resistance levels is August 3, 2022. The reference data in this report has been partly sourced from REFINITIV. 

Note 3:Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stockcan be consideredif the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above. 

Technical Indicators Defined:-  

Support:A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.  

Resistance:A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.  

Stop-loss:It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclaimer

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