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Original-Research: INDUS Holding AG - from NuWays AG
01.12.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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Classification of NuWays AG to INDUS Holding AG
Company Name: INDUS Holding AG
ISIN: DE0006200108
Reason for the research: Update
Recommendation: BUY
Target price: EUR 34
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr
INDUS' deal activity likely to accelerate; BUY
INDUS surprised investors with a small note in Q3 2025 results, hinting that
further M&A activities in Q4 2025 could be possible after fulfilling
expectations in terms of deal count earlier in the year. Looking ahead,
accelerating deal activity should put INDUS on track to reach its EUR 500m
spending target until the end of 2030.
Q4 2025 deal outlook. Given the implications of the note and the time
remaining in the year, it is likely that the company already had several
deals in pipeline and was confident about signing at least one before the
end of Q4, in our view. Looking at the 9m financial statements we believe at
least EUR 30-35m to be available for possible additional deals (so far EUR 53m
were spend ytd.). 9m cash stood at roughly EUR 200m with op. cash flow of EUR
80m.
Typical deal behavior for the company includes buying a stake in a target
first and acquiring the residual equity over time. Yet, full immediate
consolidation is probable given past deal history. Deal sizes remain
uncertain as the company may have an appetite for larger deals in order to
drive strategic growth but has completed small deals in the past as well.
Possible focus areas are likely to stretch across segments. In Engineering,
adding to their automation technology could be of interest, with recent
studies showing CAGR prospects of 10-11% until 2030 of the respective niche.
Currently low order numbers (as indicated by VDMA mechanical engineering
numbers) and price competition may temporarily weigh on the sector's
valuations. As a strategic investor, INDUS could take advantage of these
developments. In Materials Solutions, BETEK's heavy weight and strong raw
material dependency, which was a significant detractor during 9m 2025, may
lead the company to seek additional diversification i.e. in synthetic and
composite materials, for which research studies indicate 7-8% CAGR until
2030. For the Infrastructure segment, energy supply infrastructure
construction with a projected CAGR of 7-8% to 2030 could be an interesting
addition to their exposure in Hauff Technik.
2026 Outlook. Next year, INDUS looks set to spend up to EUR 100m (eNuW), which
would be in line with the company's spending targets announced at its CMD
last year. Mind you, INDUS plans to spend a total of EUR 500m until the end of
2030 on M&A. With an average acquisition multiple of 7-7.5x EV/EBITA, the
company could add at least EUR 70m of EBITA during the next five years (vs
FY24).
Overall, INDUS looks well positioned to deliver on its role as consolidator
of the German Mittelstand, grounded in a long track-record of sustainably
generating returns. With the pledged EUR 500bn of infrastructure spending
still in the cards, currently one of the historically best period for a
buy-and-build strategy (temporarily lower performance coupled with an
increasing need for succession solutions) and a solid operational
performance despite challenging end markets, INDUS remains a BUY with an
unchanged EUR 34 PT based on DCF.
You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=b062fba35544ec45b9e9b6348e990c3b
For additional information visit our website:
https://www.nuways-ag.com/research-feed
Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
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2237792 01.12.2025 CET/CEST
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