Fund Manager Summary on Codan Ltd (ASX:CDA)
In January 2026, Wilson Asset Management commented that Codan Ltd (ASX:CDA) reported a strong FY2026 half‑year trading update with group revenue of $394 million and underlying NPAT likely above $70 million, driven by 19% growth in communications and robust metal detection sales in Africa, supporting a positive outlook underpinned by defence and gold‑price tailwinds. Across fund manager commentary the consensus is that Codan’s diversification from metal detection into mission‑critical communications is underpinning sustained revenue and margin expansion — managers pointed to FY25 beats and subsequent earnings upgrades, communications organic growth near 19%, margin improvement from 35% to 39%, metal detection momentum in Africa (reported +64%) and a view of multi‑year double‑digit earnings growth or even ~25% EPS CAGR for some — actionable insights are to monitor ongoing contract wins, product launches, operating leverage and potential accretive M&A enabled by a strong balance sheet, while balancing material risks including valuation sensitivity (some managers have trimmed or exited on high multiples), exposure to gold‑price volatility and geopolitical or demand weakness in key regions such as parts of Africa or the US that could affect detector sales and near‑term earnings.
Commentary From The Managers
There are 24 insights from 13 fund managers regarding their investment in Codan Ltd (ASX:CDA) available on Thesis Tracker.
Unlock Updates With ThesisTracker Pro
Don’t let information asymmetry undermine your investment returns. Join other engaged investors on ThesisTracker Pro.
Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Alphinity Investment Management
16 Mar 2026
$33.65
Summary
- Alphinity Investment Management continues to hold Codan Ltd because the market is underestimating its earnings potential across defence and gold-related markets.
- Codan is seen as a major player in global defence and security, providing structural growth exposure.
- The business maintains a strong connection to the gold market through its metal detection products.
- Management believes earnings are being underestimated, with significant capacity for future growth ahead.
LSN Capital Partners
12 Feb 2026
$35.40
Summary
- LSN Capital Partners believes Codan is a high-quality, diversified technology manufacturer with strong near-term momentum and continues to hold, supported by robust results across both its Communications and Metal Detectors divisions.
- Codan's FY25 result exceeded expectations, with revenue +22%, EBITDA +23%, and NPAT +24%, while NPBT margins expanded to 20.6% (+1.3% year-on-year).
- The Communications division grew 26%, driven by sustained tailwinds from defence sector demand, which continues to accelerate globally.
- The Metal Detectors division experienced robust demand growth, with new product launches expected to further accelerate growth in the near term.
- A near net-cash balance sheet provides capacity for further accretive acquisitions, and the company issued a FY26 profit upgrade in January 2026.
- FY26 EPS revisions are +8%, and LSN projects an EPS CAGR of approximately 42% for FY26, reflecting the strong near-term earnings momentum.
Wilson Asset Management
31 Jan 2026
$37.63
Summary
- Wilson Asset Management believes Codan's FY2026 half‑year result demonstrates meaningful momentum and continues to hold because group revenue of $394 million (+29%) and underlying NPAT likely >$70 million (+52%).
- Communications: approximately $222 million in revenue, up 19% year‑on‑year, reflecting resilient demand across defence and related markets.
- Metal detection: approximately $168 million in sales, driven primarily by gold detector demand in Africa.
- Earnings upgrade: the scale of the earnings upgrade and strong performance across both divisions are the key drivers of positive sentiment.
- Outlook: remain positive, underpinned by defence sector tailwinds and a favourable gold‑price environment supporting detector demand.
Yarra Capital Management
31 Jan 2026
$37.63
Summary
- Yarra Capital Management continues to hold an underweight position in Codan Ltd, though the position detracted as a stronger-than-expected trading update drove the stock higher.
- Codan is benefiting from strong growth in both defence and gold end markets, both experiencing elevated demand.
- A stronger-than-expected trading update caused the stock to outperform the market, creating a headwind for the underweight position.
- Despite positive near-term trading, Yarra sees better relative value in alternative holdings and maintains its underweight stance.
Montgomery Investment Management
8 Jan 2026
$31.56
Summary
- Montgomery Investment Management notes a decline in Codan’s share price from $36 to $30, which may indicate potential investment opportunities.
- The rise in gold prices by 65% in the past year could benefit Codan.
- Codan’s growing expertise in the defense sector, particularly in supplying communications technology to the Australian Defense Force, is a strong point.
- Recent outcomes from Codan’s Annual General Meeting (AGM) were positive, reinforcing confidence.
- Montgomery Investment Management highlights Codan's dual exposure to both the gold and defense industries as a favorable aspect.
Ten Cap
12 Dec 2025
$30.47
Summary
- Ten Cap continues to hold its position in Codan Ltd.
- Company has performed exceptionally well, leading to a positive outlook.
- Diversification of sales beyond metal detectors into communication sectors.
- Alignment with defence spending trends globally.
- Management team is considered strong and capable.
- Valuation is becoming increasingly expensive.
- Overall, Ten Cap finds the investment interesting but notes the need for caution.
Atlas Funds Management
12 Dec 2025
$30.47
Summary
- Atlas Funds Management continues to hold their position in Codan Ltd.
- The company has shown strong performance in military and communication sectors, enhancing the quality of earnings.
- A key component of Codan's success is the gold detection business, which has seen significant retail sales.
- Sales of gold detectors are particularly strong in West Africa, which is a critical market.
- Historically, the performance of the gold detection business is correlated with gold prices.
- Concerns arise that a decline in gold prices could negatively impact earnings, leading to potential margin compression.
- At a valuation of 45 times forward earnings, there is limited margin of safety in the current price.
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.
Yarra Capital Management
31 Oct 2025
$36.25
Summary
- Yarra Capital Management believes Codan (CDA, underweight) is well positioned and continues to hold because of strong FY25 operating momentum, expanding communications/defence opportunities and a materially strengthened order book.
- Company focus: Provider of electronic solutions to the communications and metal detection markets, with growing exposure to defence and mission‑critical communications.
- FY25 performance: Revenue up 22% and net profit after tax up 27%, driving recent outperformance.
- Communications division: Growth led by defence and mission‑critical technologies, which have expanded the addressable market and enhanced long‑term opportunity.
- Order book and outlook: A strengthened order book improves near‑term revenue visibility and supports backlog conversion into earnings.
- Positioning: Recent results and division mix support the investment case despite the ongoing underweight stance.
Ausbil Investment Management
31 Oct 2025
$36.25
Summary
- 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.
Maple-Brown Abbott
17 Oct 2025
$33.08
Summary
- 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.
Ausbil Investment Management
31 Aug 2025
$29.73
Summary
- 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.
Pendal Group
31 Aug 2025
$29.73
Summary
- 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.
Longwave Capital
31 Aug 2025
$29.73
Summary
- 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%.
Asymmetric Asset Management
30 June 2025
$20.11
Summary
- 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.
Pendal Group
30 June 2025
$20.11
Summary
- 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.
Tyndall Asset Management
30 Apr 2025
$15.75
Summary
- 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.
Asymmetric Asset Management
28 Feb 2025
$15.23
Summary
- 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.
Maple-Brown Abbott
12 Dec 2024
$15.81
Summary
- 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.
Ausbil Investment Management
30 Sept 2024
$16.12
Summary
- 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.
Wilson Asset Management
30 Sept 2024
$16.12
Summary
- 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.
Asymmetric Asset Management
31 Aug 2024
$15.38
Summary
- 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.
Ausbil Investment Management
31 Aug 2024
$15.38
Summary
- 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.
Ausbil Investment Management
31 July 2024
$13.12
Summary
- 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
Ausbil Investment Management
28 Feb 2024
$10.12
Summary
- 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.
Montgomery Investment Management
22 Feb 2021
$15.55
Summary
- 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.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in Codan Ltd (ASX:CDA)?
Fund managers including Asymmetric Asset Management, Montgomery Investment Management, Ausbil Investment Management, Maple-Brown Abbott, Pendal Group, Wilson Asset Management, Tyndall Asset Management, Longwave Capital, LSN Capital Partners, Ten Cap, Atlas Funds Management and Yarra Capital Management have invested in Codan Ltd (ASX:CDA).
Why do fund managers invest in Codan Ltd?
Fund managers invest in Codan Ltd due to its strong revenue growth, significant profit increases, and consistently rising dividends. The company operates in the communications and metal detection sectors, benefiting from favorable market trends such as increased defense spending and high gold prices. Codan's division focused on defense communications positions it well for future demand, while its metal detection segment has shown impressive growth. The firm’s robust balance sheet and operational momentum enhance its risk/reward profile, appealing to long-term investors.
What happened to Codan Ltd (ASX:CDA)?
Fund managers have invested in Codan Ltd due to its strong positioning in the defense and communications sectors, alongside a robust metal detection business. Key factors include:
1. **Diverse Revenue Streams**: Codan’s split operations in high-margin communications technology and metal detectors provide resilience and growth potential.
2. **Strong Demand**: Ongoing strength in defense and communication orders, along with Minelab detector sales exceeding expectations, supports the company’s outlook for sustained earnings growth.
3. **Operational Momentum**: Recent earnings upgrades highlight operational efficiency and good leverage in the business model.
4. **Market Leadership**: Codan is recognized as the world leader in metal detection technology, while also capitalizing on structural growth in the defense sector.
5. **Positive Financial Indicators**: Fund managers note a strong balance sheet that enables potential for strategic acquisitions, contributing to a projected 25% EPS CAGR.
These elements underline the conviction among fund managers to maintain their investments in Codan Ltd.
What is the short interest in Codan Ltd (ASX:CDA)?
The short interest in Codan Ltd (ASX:CDA) is 0.36% which makes it the 313th most shorted stock on the ASX. Of the 181.9M shares that Codan Ltd has on issue, 649.2K have been sold short.
What does Codan Ltd (ASX:CDA) do?
Codan Ltd. engages in the provision of electronic solutions, focusing on metal detection and communications technology. It operates through the following segments: Communications, Metal Detection, and Other. The Communications segment includes the design, development, manufacture, and marketing of communications equipment. The Metal Detection segment focuses on the designs, development, manufacture, and marketing of metal detection equipment. The Other segment refers to the tracking solutions business and the ongoing manufacturing and sale of tracking products. The company was founded by Alastair Wood, Ian Baker Wall, and Jim Irvine Bettison on July 1, 1959, and is headquartered in Mawson Lakes, Australia.