This report is an updated version of the report published on 10 July 2024 at 4:04 PM AEST.

Judo Capital Holdings Ltd (ASX: JDO)
Judo Capital Holdings Limited provides various banking products and services for small and medium businesses in Australia.
Recommendation Rationale – SELL at AUD 1.408
- Profit Booking: JDO’s share price has surpassed R1 level recommended on 1 July 2024; and thus, it offered a profit booking opportunity.
- Overvalued Multiples: On a forward 12-month basis – key trading multiples (EV/EBITDA, Price/Earnings, EV/Sales, and Price/Cash Flow) are higher than the median of Financials’ sector.
- Technical Standpoint: The momentum oscillator, 14-day RSI (~63.03) is approaching the overbought zone; and thus, price can face correction from the current levels.
- Decrease in Net Interest Margins: The Net interest margins (NIM) fell by 32 bps from 3.34% in H2 FY23 to 3.02% in H1 FY24, resulting from headwinds from Term Funding Facility (TFF) refinancing, which the company expects to witness till H1 FY25.
- Higher Operating Expenses: During H1 FY24, operating expenses increased by 5% against H2 FY23, primarily due to higher employee costs and run rate impact of recent recruitment.
JDO’s Daily Price Chart

(Source: REFINITIV; Analysis by Kalkine Group)
Valuation Methodology: Price/Earnings Approach (FY Jun'25E) (Illustrative)

Given its current trading levels, recent rally in the share price, and risks associated, it is prudent to book profit at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 1.408, at 1:50 PM AEST, as of 10 July 2024.
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. 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 10 July 2024. 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 downtrend may take a pause backed by demand or buying interest.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.
Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.