Lindsay Australia Ltd

Fund managers have highlighted Lindsay Australia as an undervalued, well-positioned logistics operator benefiting from industry consolidation. Cerutty Macro Fund (October 2023, share price ~$0.97) saw it trading at a significant discount to fair value (under 8x forward earnings versus a ~12x historical average and ~13.4x peer average), with management guiding to 15-20% EBITDA growth in FY24 and over 10% in FY25, aided by its opportunistic acquisition of $22.3 million in assets from the liquidated Scott's Refrigerated Logistics, positioning it to absorb freed-up market share and increase pricing power in an inflationary environment. Centennial Asset Management (January 2025) similarly noted the stock re-rated strongly after a major trucking competitor went broke, changing the competitive landscape favourably. Contract Asset Management (May 2024, share price ~$0.91) argued that despite a share-price pullback and slightly lowered EBITDA guidance due to weather disruptions, the seasonal volatility was more than priced in, with the stock trading on a P/E of 7x and a grossed-up dividend yield above 7%, a robust balance sheet, and a competitive position that had strengthened in recent years, leaving them optimistic on the business and stock.