Fund Manager Summary
The fund managers believe that Codan Ltd presents a strong investment opportunity, particularly due to its recent financial performance. In their opinion, the company’s mid-teen revenue growth, coupled with a remarkable 21% growth in profit, indicates robust operational efficiency. Additionally, the 19% uplift in dividends reflects a commitment to returning value to shareholders, which is appealing for income-focused investors. Given these positive indicators, the fund managers are optimistic about Codan’s potential for sustained growth and recommend monitoring the stock closely.
Source: Trading View
Commentary From The Managers
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LSN Capital Partners
5 Nov 2025
$34.90
Summary
- Ongoing strength in defence and communications orders highlighted at Codan’s AGM.
- Minelab detector sales have exceeded expectations.
- Codan is well positioned to sustain a ~25% EPS CAGR.
- Robust demand and operational momentum support this growth.
- Strong balance sheet provides ample capacity for accretive M&A-driven growth in coming years.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
LSN Capital Partners
5 Nov 2025
$34.90
- Ongoing strength in defence and communications orders highlighted at Codan’s AGM.
- Minelab detector sales have exceeded expectations.
- Codan is well positioned to sustain a ~25% EPS CAGR.
- Robust demand and operational momentum support this growth.
- Strong balance sheet provides ample capacity for accretive M&A-driven growth in coming years.
Summary
Ausbil Investment Management
31 Oct 2025
$36.25
- Codan (CDA) achieved a return of +22.8% in October, contributing to a remarkable +129.5% total return year-to-date.
- Ausbil Investment Management emphasizes the importance of stock selection, position sizing, and maintaining conviction through volatility.
- They advocate for adding to positions during market weaknesses, provided that high conviction and the investment thesis remain intact.
- Codan's positive momentum continued post-August results, with the company maintaining full-year guidance during the October AGM.
Summary
Maple-Brown Abbott
17 Oct 2025
$33.08
- Maple-Brown Abbott initially purchased Codan stock at sub-$7 two and a half years ago, with current trading exceeding $30.
- Codan has been a significant contributor to the fund's performance.
- The company is a world leader in metal detection technology, with half of its business focused on this sector.
- Past political unrest in key African markets created a buying opportunity due to earnings downgrades.
- The other half of Codan’s business is in communications technology, catering to defence and law enforcement agencies.
- Communications segment features niche products with high margins and low competition.
- Structural growth tailwinds are evident in the communications technology sector.
- Codan has achieved good operating leverage over time, enhancing profitability.
- The metal detection business has rebounded strongly, leading to multiple earnings upgrades.
Summary
Longwave Capital
31 Aug 2025
$29.73
- Codan (CDA) has been a sector standout for several consecutive reporting periods.
- The FY25 result was a 5% beat to consensus, highlighting the benefits of global and channel diversification.
- A slowdown in the US has been offset by global contract wins.
- Communications division achieved 19% organic growth against a target of 10-15%.
- Conflicts are a tailwind for the business, while humanitarian aid drives the countermine division.
- Detector sales are modest in the US but performing well globally, likely supported by high gold prices.
- Codan continues to execute effectively, lifting margins from 35% to 39%.
Summary
Ausbil Investment Management
31 Aug 2025
$29.73
- Codan (CDA) returned +47.4% after exceeding market consensus with a +9%/+12%/+12% beat in Revenue/EBITDA/NPAT.
- Metal Detection in Africa grew +64%, with ongoing momentum anticipated in FY26, supported by strong gold prices.
- Upcoming launch of new product releases is expected to enhance revenue growth in this high-margin segment.
- DTC communications benefitted from robust global defence demand.
- The public safety division Zetron demonstrated reliable performance.
- Ausbil continues to hold Codan due to these positive growth indicators and strong market positioning.
Summary
Pendal Group
31 Aug 2025
$29.73
- Pendal Group continues to hold its investment in Codan Ltd.
- Codan designs and manufactures communication and metal detection equipment.
- FY25 revenue and earnings exceeded consensus forecasts.
- Strong tailwinds noted across several products and markets, particularly due to the high gold price.
- The positive outlook for the metal detection division is a key factor in earnings upgrades for FY26 and FY27.
- Despite the stock's strong performance, valuation remains reasonable compared to peers.
Summary
Pendal Group
30 June 2025
$20.11
- Pendal Group maintains an overweight position in Codan.
- Codan has shown strong performance, particularly in June.
- The company benefits from rising expectations of increased military spending in European countries.
- Codan's division focuses on high-end communication equipment with defence applications.
Summary
Asymmetric Asset Management
30 June 2025
$20.11
- Asymmetric Asset Management sold their investment in Codan after a solid month of performance, with the stock up ~12%.
- Codan had been a core holding since February 2022, when it was trading at ~$7.
- The final sale was executed at ~$20 in June.
- Despite a positive long-term outlook for Codan, Asymmetric Asset Management believed the market had priced the stock for perfection.
- The fund manager identified more attractive asymmetric payoffs in other investment opportunities.
Summary
Tyndall Asset Management
30 Apr 2025
$15.75
- Codan is a provider of communications and metal detection technologies.
- Long international runway for growth in communications business. Tyndall Asset Management notes the potential in government end-to-end emergency solutions and tactical communications for military and defense forces.
- Metal detection technologies business is launching new products. This aligns well with the rising gold prices, which are reaching record levels.
- Recent market volatility presented an opportunity. Tyndall Asset Management continues to hold because it views Codan as a quality business poised for double-digit earnings growth in the medium term.
Summary
Asymmetric Asset Management
28 Feb 2025
$15.23
- Asymmetric Asset Management notes Codan’s strong market presence in the niche of communications software and hardware.
- Reported a mid-teen growth in revenue.
- Achieved 21% growth in profit.
- Declared a 19% increase in dividend.
- Asymmetric Asset Management continues to support Codan due to its robust financial performance.
- The outlook remains positive based on growth trajectory and dividend increases.
Summary
Maple-Brown Abbott
12 Dec 2024
$15.81
- Maple-Brown Abbott highlights ongoing geopolitical tensions and de-globalisation driving structural growth in global defence spending.
- Codan Limited (CDA) is well-positioned due to its expansion of communication services for military and emergency response.
- Founded in 1959, Codan has a dominant market share in gold prospecting, recreation, and countermine segments, especially benefiting from the Russia/Ukraine conflict.
- The company is focusing on communications growth, driven by increasing military expenditure and public safety initiatives.
- Codan invests significantly in innovation ($57.4m in FY24, ~10% of sales) and is at the start of an earnings upgrade cycle.
- Efforts in the communications division aim to expand the product suite and create predictable revenue streams, with 60% of FY24 revenue coming from an order book of $197m.
- Strategic acquisitions, like Kagwerks, enhance market reach and provide access to US Department of Defence customers.
- Potential revenue drivers include: 30,000 docking products currently deployed vs. a market of 450,000 US soldiers and new product innovations.
- Acquisition capacity is supported by a strong balance sheet, with increased bank facilities enhancing growth opportunities.
- Communications division revenue growth target is 10%-15% pa, with potential for EBITDA margin increases toward 30% over the medium-term.
- Upside potential exists for the metal detection division driven by recreation market growth and new product releases.
- Codan's earnings profile is seen as being at an inflection point, with expected market share gains from positive external and internal drivers.
Summary
Ausbil Investment Management
30 Sept 2024
$16.12
- Codan (CDA) returned +35.5% for the quarter following a beat to consensus earnings estimates in reporting season.
- Re-rate of the multiple reflects appreciation of the communications earnings mix and S&P/ASX 200 inclusion.
- Strong forward orderbook (+21%) supports a positive outlook, driven by the high-quality Communications division.
- Zetron is identified as a key growth driver for the Communications segment, noted during a company visitation in the USA.
- CDA has graduated from the ex-200 micro-cap universe into the S&P/ASX 200, attracting the attention of small-cap managers.
- Update expected at the upcoming AGM in October.
Summary
Wilson Asset Management
30 Sept 2024
$16.12
- Codan announced the acquisition of Kägwerks, enhancing its capabilities in lightweight communications equipment.
- The acquisition enables Codan to supply the US Department of Defense through its DOCK branded solutions.
- This technology improves situational awareness and provides a strategic advantage in field operations.
- Wilson Asset Management views the acquisition as positive for Codan's Radio Communications segment.
- The move aligns with Codan's long-term growth strategy and is expected to drive further earnings growth.
Summary
Ausbil Investment Management
31 Aug 2024
$15.38
- Codan (CDA) returned +18.0% for the month, reflecting a beat on consensus earnings estimates.
- Strong revenue growth and operating leverage in the Metal Detection (MineLab) division, particularly in Africa.
- Expectations for the Metal Detection segment globally to be supported by Amazon and ecommerce channels.
- Strong forward orderbook +21%, contributing to a positive outlook for the company.
- Significant growth anticipated from the high quality Communications division, especially Zetron.
- Ausbil continues to hold because Zetron is viewed as a key growth driver for the Communications segment.
- Zetron is considered the most exciting part of Codan's business.
Summary
Asymmetric Asset Management
31 Aug 2024
$15.38
- Codan Ltd stands out as a core holding for Asymmetric Asset Management.
- Share price increased by 18%, driven by solid results.
- Earnings rose by 29%, indicating strong operational performance.
- Positive outlook with a target of 10% to 15% organic revenue growth in the communications division.
- Asymmetric Asset Management continues to hold due to favorable growth prospects.
Summary
Ausbil Investment Management
31 July 2024
$13.12
- Codan returned +9.1% for the month
- Stellar CYTD total return of 55.7% since initiating a position in September 2023
- Positive earnings revisions and earnings multiple rerate support the share price
- Increasing Communications earnings mix contributing to growth
- Potential for S&P/ASX 200 inclusion may enhance market awareness
- CDA screens well with strong organic growth and high return on invested capital (ROIC)
- Strong cash generation and conservative balance sheet facilitate further investment
- Focus on communications and pursuing accretive M&A
Summary
Ausbil Investment Management
28 Feb 2024
$10.12
- Codan (CDA) achieved a +27.6% return following a strong top-line performance that beat consensus expectations.
- Ausbil highlights CDA's transformation into a more diversified business through strategic investments.
- The communications division has become a key provider of mission-critical solutions for law enforcement and first responders.
- Recent contract wins in the communication sector bolster CDA's growth prospects.
- Ausbil believes CDA is positioned for sustained earnings growth due to its expanded communications offerings.
- The fund manager anticipates a potential multiple rerate for CDA as it continues to evolve.
Summary
Montgomery Investment Management
22 Feb 2021
$15.55
- Codan (ASX:CDA) is a top ten position in The Montgomery [Private] Fund and just outside the top ten in The Montgomery Fund.
- It has been held for several years since being selected by Andreas Lundberg and purchased at prices between $2.86 and $3.35.
- The recent 1H21 report exceeded expectations, with net profit after tax (NPAT) of $41.3 million, surpassing their estimates by approximately $1.5 million.
- Metal Detection sales grew by 55% in 1H21, which is encouraging as this segment is a major value driver.
- The Communication division was weaker than anticipated but impacted by COVID-19 travel restrictions, limiting sales staff engagement.
- The company is guiding for FY21 sales of A$80-90 million after a reported rebound.
- The launch of the GPX6000 gold detection machine in the second half is expected to boost sales.
- Codan's sales run-rate is improving, as indicated by $35 million in sales in the first month of the second half.
- Codan's shares are estimated to be trading at around 26x FY21 earnings and 22x FY22 earnings, reflecting premium growth rates.
- Sales growth in Recreational detectors (+66%) is outpacing specialist Gold detectors (49%), diversifying revenue sources.
- Product extension and geographical expansion are ongoing, reassuring investors about future demand stability.
- The Communication business has a strong order book for the second half.
- Codan's acquisition of Domo Tactical Communications will be earnings accretive immediately, anticipated to bring $90 million in revenue and $9 million profit before tax in FY22.
- Completion of the Domo acquisition is expected by April 30, enhancing diversification away from gold detector sales.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"While mid-teen revenue growth and a 21% profit surge seem promising, the real intrigue lies in Codan's ability to sustain this momentum. The 19% dividend uplift hints at confidence, but the market will be watching closely for consistency in execution."
Last Updated: 05 Nov 2025
Query The Data
Frequently Asked Questions
Who is investing in Codan Ltd (ASX:CDA)?
Fund managers including Asymmetric Asset Management, Montgomery Investment Management, Ausbil, Maple-Brown Abbott, Pendal Group, Wilson Asset Management, Tyndall Asset Management, Longwave Capital and LSN Capital Partners have invested in Codan Ltd (ASX:CDA).
Why do fund managers invest in Codan Ltd?
Fund managers are investing in Codan Ltd due to its strong financial performance, highlighted by mid-teen revenue growth, a 21% increase in profit, and a 19% rise in dividends, indicating robust operational efficiency and shareholder value.
What happened to Codan Ltd (ASX:CDA)?
Fund managers are investing in Codan Ltd due to its consistent performance, demonstrated by exceeding revenue and earnings forecasts for FY25. The company benefits from global diversification, with strong growth in its communications and metal detection segments, particularly driven by high gold prices and defense demand. Codan's ability to adapt to market conditions, along with a solid balance sheet and ongoing operational momentum, positions it well for future earnings growth. The combination of niche products, high margins, and favorable market trends supports a positive outlook for the company.