IPD Group's Electrical Distribution Business Rides the Data Centre Boom

An early IPO conviction call paid off as data centre demand for electrical components became a genuine growth driver, even through a July pullback.

31 Jul 2026 · 3 min read

IPD Group, an electrical infrastructure distributor increasingly exposed to data centre demand, has been one of Asymmetric Asset Management's standout picks since its IPO, rising 98 percent over the year to June 2026 as it delivered strong FY26 EBIT growth guidance, before a 15 percent July pullback gave the fund an opportunity to add ahead of its August full-year result.

An early conviction call that paid off

Asymmetric Asset Management described IPD Group as an example from recent years of a business it identified and bought into as an early shareholder around the time of its IPO, well before the broader market had properly recognised its quality, naming it among its best performers over the twelve months to 30 June 2026, up 98 percent, with conviction remaining steadfast throughout and the payoff assessed as even more rewarding at lower prices along the way.

IPD Group is an example from recent years of a business we identified and bought into as an early shareholder around the time of its IPO, well before the broader market had properly recognised its quality. Our conviction in IPD remained steadfast and indeed at the lower prices we assessed the payoff as even more rewarding.

— Asymmetric Asset Management, Monthly Report, June 2026

Data centre demand becomes a genuine tailwind

Hayborough Investment Partners named IPD Group, alongside construction and equipment hire company Symal, as two of its winners over the prior 12 months, both still top-five holdings with further to run, noting IPD Group supplies electrical components with data centres becoming an increasing proportion of its business. Asymmetric Asset Management said IPD Group released FY26 earnings guidance for 19 percent growth in EBIT, with growing electrical parts demand, including from data centres, proving a key driver, sending the share price up 6 percent having already risen 29 percent in April.

IPD Group have similar tailwinds behind them, but they are supplying electrical components, with data centres becoming an increasing proportion of their business.

— Hayborough Investment Partners, Article, June 2026

A pullback creates a buying opportunity

Asymmetric Asset Management said IPD Group gave back some of its recent gains, declining 15 percent, despite already guiding to 10 percent year-on-year growth in underlying EBIT in May, and given an undemanding forward price to earnings multiple of 16.5 times, an aligned management team and exposure to electrification-related tailwinds, the fund was unperturbed by the pullback and used the weakness to increase its weighting ahead of IPD's full-year result in August.

Given its undemanding forward PE multiple of 16.5x, aligned management team and exposure to electrification-related tailwinds, we were unperturbed by the pullback and used the weakness to increase the Fund's weighting ahead of IPD's full-year result in August.

— Asymmetric Asset Management, Monthly Report, July 2026

What fund managers say they are watching next is delivery of the August full-year result against the 10 to 19 percent EBIT growth guidance range, continued data centre-driven electrical parts demand, and whether the stock's still-undemanding valuation keeps attracting buyers on weakness.