Incitec Pivot Ltd

IPL: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$2.80	Lqcml	Gtymlzjns

Incitec Pivot: Explosives Ex WALA Improve; Fertilizer Sale Still on the Agenda

Mark Taylor

May 16, 2024

No-moat explosives and fertilizer manufacturer and distributor Incitec Pivot reported a 54% decline in underlying first-half fiscal 2024 net profit after tax to AUD 164 million, somewhat below our AUD 175 million forecast. While we read no material implication for our midcycle estimates, our fair value increases to AUD 3.40 from AUD 3.25, mainly due to the time value of money. At AUD 3.00, shares are somewhat undervalued in 3-star territory.

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