Section 1: Company Overview and Fundamentals Insights

1.1 Company Overview

Monash IVF Group Limited (ASX: MVF) is an Australia-based company primarily involved in assisted reproductive services. The Company is also a provider of specialist women’s imaging services. It operates through two segments: Monash IVF Group Australia and Monash IVF Group International.

1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top 10 Shareholders: The top 10 shareholders together form ~31.20% of the total shareholding. Allan Gray Australia Pty Ltd and Challenger Managed Investments Ltd. are holding a maximum stake in the company at ~7.04% and ~6.02%, respectively.

1.4 Key Metrics: The company reported a high net margin of 10.5% in 1HFY23 compared to the industry median of 9.4%. The company also reported a high gross margin during 1HFY23 ~89.0% compared to 61.8% of the industry median. Below is captured the trend of the total revenue and current ratio:

Section 2: Business Updates and Financial Highlights

2.1 Business Updates:

2.2 Results Highlights of 1HFY23: The company completed the ART Associates QLD acquisition in October 2022, and the benefit of this acquisition could be visible during 2HFY23. During 1HFY23, the company reported growth in net operating cash flow to AUD 15.5mn and increased capital expenditure to AUD 13.7mn.

2.3 Future Investment: The company invested in future growth during 1HFY23 and FY22, including recent acquisitions, attracting new fertility specialists, and expanding its presence in South-East Asia.

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

The stock has witnessed a gain of ~4.50% in 3 months, while over the last 1 year, it decreased by ~6.69%. The stock has a 52-week low and 52-week high of AUD 0.870 and AUD 1.265, respectively and is currently trading slightly below the average of a 52-week high-low average.

4.2 Fundamental Valuation

Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative)

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 March 1, 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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