Company Overview: Lifestyle Communities Limited (ASX: LIC) is an Australian property development and management company, which was listed on ASX on 15th December 1998. The company builds, owns, and operates land lease communities and offers affordable housing options to Australians aged over 50. Kalkine’s Real Estate Report covers the Investment Highlights, Management Insights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.
The top 10 shareholders together form ~52.67% of the total shareholding. AustralianSuper and Brahman Capital Management Pte Ltd. holding a maximum stake in the company at ~10.63% and ~8.96%, respectively.
The company’s net margin stood at 35.3% in FY23 compared to 9.7% of the industry median. Below is captured the trend of gross margin and current ratio since FY19:
The stock price went up by ~1.8% in last 1 month, whereas over the last 9 months, stock prices went down by ~7.9%. The stock has a 52-week low and 52-week high of AUD 14.01 and AUD 20.32, respectively, and is currently trading slightly above the mid-range of the 52-week-high-low levels. LIC was last covered in a report dated ’17 August 2022’.
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is neither an indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 5 September 2023. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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